The Economic Effects of Social Networks: Evidence from the Housing Market

• 成果类型: Article
• 署名作者: Bailey, Michael; Cao, Ruiqing; Kuchler, Theresa; Stroebel, Johannes
• 署名单位: Facebook Inc; Harvard University; New York University; National Bureau of Economic Research; New York University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/700073
• 发表日期: 2018
• 页码: 2224-2276
• 关键词: risk; expectations

摘要

We show how data from online social networking services can help researchers better understand the effects of social interactions on economic decision making. We combine anonymized data from Facebook, the largest online social network, with housing transaction data and explore both the structure and the effects of social networks. Individuals whose geographically distant friends experienced larger recent house price increases are more likely to transition from renting to owning. They also buy larger houses and pay more for a given house. Survey data show that these relationships are driven by the effects of social interactions on individuals' housing market expectations.