Consumption Network Effects

Giacomo De Giorgi, Luigi Pistaferri and Anders Frederiksen

No 11332, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this paper we study the relevance and mechanics of consumption network effects. We use long panel data on the entire Danish population to construct a measure of consumption based on administrative tax records, and define the peer groups in terms of workplace, occupation, education, and age. We then apply an IV strategy, and fixed effect models, to recover the effects. Our instruments arise naturally from the network structure and firms shocks. The estimated effects are statistically significant and relevant for policies as they generate non- negligible multiplier effect. Further, the results are consistent with a “Keeping-up”model.

Date: 2016-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://cepr.org/publications/DP11332 (application/pdf)

Related works:
Journal Article: Consumption Network Effects (2020)
Working Paper: Consumption Network Effects (2018)
Working Paper: Consumption Network Effects (2016)
Working Paper: Consumption Network Effects (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11332

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP11332

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().