The Role of Peer Effects on Households Consumption and Finance

Peer Effects on Households Consumption The basic idea of peer income’s influence on households’ consumption was first constructed by Duesenberry (1949) in his book about relative income hypothesis. According to this theory, households with below average income do not have the incentives to keep more savings. Instead, they tend to spend a larger proportion of … Continue reading The Role of Peer Effects on Households Consumption and Finance