Stumbling and Mumbling

Peers, & predictability

chris dillow
Publish date: Tue, 03 Dec 2013, 02:14 PM
chris dillow
0 2,773
An extremist, not a fanatic
Peer effects matter for consumer spending. A new paper finds that "the consumption decisions of U.S. households are to a large extent driven by upwardly directed interpersonal comparisons." That is, we spend more if our neighbours are living it large....
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