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Using long panel data covering the entire Danish population, the authors construct peer-based measures from administrative tax records on income and assets, combined with matched employer-employee data. They form workplace-based peer groups with minimal overlap to generate valid network-structure instruments and use fixed-effects models to address reflection, self-selection, and common shocks. Results show statistically significant endogenous and exogenous peer effects relevant for policy, and the paper compares “keeping up with the Joneses” status versus risk-sharing explanations.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/consumption-network-effects-working-paper-22357/297185/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/consumption-network-effects-working-paper-22357/297185.png","ImageObject",300,407,{"name":92,"@type":93},"WPS_1786070896","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-18",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",12,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"How does the paper define peer groups for studying consumption network effects?","Question",{"text":113,"@type":114},"It combines administrative tax records with matched employer-employee data to build peer groups based on workplace, yielding a tighter and more credible network definition than prior work.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What methods are used to estimate endogenous and exogenous peer effects?",{"text":118,"@type":114},"The paper constructs valid instruments from the peer network structure using non-overlapping peer-group definitions and estimates fixed-effects models to handle reflection, self-selection, and common shocks.",{"name":120,"@type":111,"acceptedAnswer":121},"Which mechanisms are examined to explain peer-driven consumption effects?",{"text":122,"@type":114},"The paper distinguishes between “keeping up with the Joneses” (a status model) and a traditional risk-sharing view.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},297185,1789742131,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":140,"language":141,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":142,"faqs":143,"seo_title":144,"seo_description":67,"update_tm":130,"read_time":145,"preview_page_count":4},549768072016,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","NBER WORKING PAPER SERIES  \nCONSUMPTION NETWORK EFFECTS  \nGiacomo De Giorgi  \nAnders Frederiksen  \nLuigi Pistaferri  \nWorking Paper 22357  \n[http://www.nber.org/papers/w22357](http://www.nber.org/papers/w22357)  \nNATIONAL BUREAU OF ECONOMIC RESEARCH  \n1050 Massachusetts Avenue  \nCambridge, MA 02138  \nJune 2016  \nWe thank Orazio Attanasio, Chris Carroll, Nicola Fuchs-Schuendeln, Soren Leth-Petersen, Magne Mogstad, Petra Persson, Nick Roussanov, Dan Silverman, Nick Souleles, Adam Szeidl, and seminar participants at several seminars and conferences in Europe and the US for comments. Financial support from the Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2011-0075) and ECO2011-28822, the EU through the Marie Curie CIG grant FP7-631510 (De Giorgi), the ERC starting grant 284024 and the NSF grant 1458536 (Pistaferri) is gratefully acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York, the Federal Reserve System, or the National Bureau of Economic Research.  \nNBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.  \n© 2016 by Giacomo De Giorgi, Anders Frederiksen, and Luigi Pistaferri. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source.  \nConsumption Network Effects  \nGiacomo De Giorgi, Anders Frederiksen, and Luigi Pistaferri NBER Working Paper No. 22357  \nJune 2016  \nJEL No. D12,D91  \nABSTRACT  \nIn this paper we study consumption network effects. Does the consumption of our peers affect our own consumption? How large is such effect? What are the economic mechanisms behind it? We use long panel data on the entire Danish population to construct a measure of consumption based on administrative tax records on income and assets. We combine tax record data with matched employer-employee data so that we can construct peer groups based on workplace, which gives us a much tighter, precise, and credible definition of networks than used in previous literature. We use the available data to construct peer groups that do not perfectly overlap, and as such provide valid instruments derived from the network structure of one's peers group. The longitudinal nature of our data also allow us to estimate fixed effects models, which help us tackle reflection, self-selection, and common-shocks issues all at once. We estimate nonnegligible and statistically significant endogenous and exogenous peer effects. Estimated effects are quite relevant for policies as they generate non-negligible multiplier effect. We also investigate what mechanisms generate such effects, distinguishing between \"keeping up with the Joneses\", a status model, and a more traditional risk sharing view.  \nGiacomo De Giorgi  \nFederal Reserve Bank of New York 33 Liberty Street  \nNew York, NY 10045  \ngiacomo.degiorgi@gmail.com  \nAnders Frederiksen  \nAarhus University  \nDepartment of Business Development and Technology  \nBirk Centerpark 15  \n7800 Herning Denmark [afr@btech.au.dk](afr@btech.au.dk)  \nLuigi Pistaferri Department of Economics 579 Serra Mall Stanford University Stanford, CA 94305-6072 and NBER [pista@stanford.edu](pista@stanford.edu)  \n􀀱 􀁉􀁮􀁴􀁲􀁯􀁤􀁵􀁣􀁴􀁩􀁯􀁮  \n􀁄􀁯􀁥􀁳 􀁴􀁨􀁥 􀁣􀁯􀁮􀁳􀁵􀁭􀁰􀁴􀁩􀁯􀁮 􀁯􀁦 􀁯􀁵􀁲 􀁰􀁥􀁥􀁲􀁳 􀁡􀂤􀁥􀁣􀁴 􀁯􀁵􀁲 􀁯􀁷􀁮 􀁣􀁯􀁮􀁳􀁵􀁭􀁰􀁴􀁩􀁯􀁮􀀿 􀁈􀁯􀁷 􀁬􀁡􀁲􀁧􀁥 􀁩􀁳 􀁳􀁵􀁣􀁨 􀁥􀂤􀁥􀁣􀁴􀀿􀁗􀁨􀁡􀁴 􀁡􀁲􀁥 􀁴􀁨􀁥 􀁥􀁣􀁯􀁮􀁯􀁭􀁩􀁣 􀁭􀁥􀁣􀁨􀁡􀁮􀁩􀁳􀁭􀁳 􀁢􀁥􀁨􀁩􀁮􀁤 􀁩􀁴􀀿 􀁗􀁨􀁡􀁴 􀁡􀁲􀁥 􀁴􀁨􀁥 􀁡􀁧􀁧􀁲􀁥􀁧􀁡􀁴􀁥 􀁩􀁭􀁰􀁬􀁩􀁣􀁡􀁴􀁩􀁯􀁮􀁳 􀁯􀁦 􀁣􀁯􀁮􀁳􀁵􀁭􀁰􀀭􀁴􀁩􀁯􀁮 􀁮􀁥􀁴􀁷􀁯􀁲􀁫 􀁥􀂤􀁥􀁣􀁴􀁳􀀿 􀁔􀁨􀁥􀁳􀁥 􀁡􀁲􀁥 􀁴􀁨􀁥 􀁱􀁵􀁥􀁳􀁴􀁩􀁯􀁮􀁳 􀁴􀁨􀁡􀁴 􀁷􀁥 􀁩􀁮􀁶􀁥􀁳􀁴􀁩􀁧􀁡􀁴􀁥 􀁩􀁮 􀁴􀁨􀁩􀁳 􀁰􀁡􀁰􀁥􀁲􀀮 􀀱 􀁔􀁯 􀁴􀁨􀁩􀁳 􀁰􀁵􀁲􀁰􀁯􀁳􀁥􀀬􀁷􀁥 􀁵􀁳􀁥 􀁡􀁤􀁭􀁩􀁮􀁩􀁳􀁴􀁲􀁡􀁴􀁩􀁶􀁥 􀁤􀁡􀁴􀁡 􀁦􀁯􀁲 􀁴􀁨􀁥 􀁥􀁮􀁴􀁩􀁲􀁥 􀁰􀁯􀁰􀁵􀁬􀁡􀁴􀁩􀁯􀁮 􀁯􀁦 􀁄􀁥􀁮􀁭􀁡􀁲􀁫 􀁦􀁯􀁲 􀁴􀁨􀁥 􀁰􀁥􀁲􀁩􀁯􀁤 􀀱􀀹􀀸􀀰􀀭􀀱􀀹􀀹􀀶􀀮 􀁔􀁨􀁥􀁤􀁡􀁴􀁡 􀁳􀁥􀁴 􀁩􀁮􀁣􀁬􀁵􀁤􀁥􀁳 􀁩􀁮􀁦􀁯􀁲􀁭􀁡􀁴􀁩􀁯􀁮 􀁯􀁮 􀁩􀁮􀁣􀁯􀁭􀁥 􀁡􀁮􀁤 􀁡􀁳􀁳􀁥􀁴􀁳􀀬 􀁳􀁯 􀁷􀁥 􀁣􀁡􀁮 􀁣􀁯􀁮􀁳􀁴􀁲􀁵􀁣􀁴 􀁡 􀁭􀁥􀁡􀁳􀁵􀁲􀁥 􀁯􀁦 􀁣􀁯􀁮􀁳􀁵􀁭􀁰􀁴􀁩􀁯􀁮􀁦􀁲􀁯􀁭 􀁢􀁵􀁤􀁧","cbCaifqZ0e9pYhI0","https://ap.wps.com/l/cbCaifqZ0e9pYhI0","pdf",635863,58,"English","# Abstract\n## Research question\n## Data and peer-group construction\n## Identification strategy\n## Empirical results and policy relevance\n## Mechanism comparison","[{\"question\":\"How does the paper define peer groups for studying consumption network effects?\",\"answer\":\"It combines administrative tax records with matched employer-employee data to build peer groups based on workplace, yielding a tighter and more credible network definition than prior work.\"},{\"question\":\"What methods are used to estimate endogenous and exogenous peer effects?\",\"answer\":\"The paper constructs valid instruments from the peer network structure using non-overlapping peer-group definitions and estimates fixed-effects models to handle reflection, self-selection, and common shocks.\"},{\"question\":\"Which mechanisms are examined to explain peer-driven consumption effects?\",\"answer\":\"The paper distinguishes between “keeping up with the Joneses” (a status model) and a traditional risk-sharing view.\"}]","Consumption Network Effects - Working Paper 22357 | PDF",146]