Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142422
Authors: 
De Giorgi, Giacomo
Frederiksen, Anders
Pistaferri, Luigi
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9983
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 effects. Further, the results are consistent with a "Keeping-up" model.
Subjects: 
consumption
networks
social multiplier
risk sharing
JEL: 
E21
D12
D85
Document Type: 
Working Paper

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