TY  - RPRT
        AU  - Giorgi, Giacomo De
AU  - Frederiksen, Anders
AU  - Pistaferri, Luigi
        TI  - Consumption Network Effects
        PY  - 2016/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9983
        UR  - https://www.iza.org/index.php/publications/dp9983
        AB  - 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.
        KW  - consumption
KW  - networks
KW  - social multiplier
KW  - risk sharing
        ER  -