Smooth it like the 'Joneses'? Estimating peer-group effects in intertemporal consumption choice

• 成果类型: Article
• 署名作者: Maurer, Juergen; Meier, Andre
• 署名单位: University of Mannheim; International Monetary Fund
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2007.02129.x
• 发表日期: 2008
• 页码: 454-476
• 关键词: habit formation; life-cycle; interdependent preferences; liquidity constraints; panel-data; demand; income; MODEL; GROWTH; prices

摘要

Recent theoretical contributions have suggested peer-group effects as a potential explanation for several puzzles in macroeconomics but their empirical relevance for intertemporal consumption choice is an open question. We derive an extension of the standard life-cycle model that allows for consumption externalities. In this framework, we propose a social multiplier approach to distinguish true externalities from merely correlated effects. Estimating our model using US panel data, we find strong predictable co-movement of household consumption within peer groups. Although much of this co-movement reflects correlated effects only, there is statistically significant evidence for moderate consumption externalities across several plausible peer-group specifications.