Peer Effects in the Demand for Housing Quality
AbstractUsing detailed data on friendship networks within neighborhoods, we investigate the importance of social interactions in one's own residential neighborhood in the demand for housing quality. We find evidence consistent with the presence of peer effects, especially for households living in urban areas. Our findings are in line with the prediction of a model where conformity preferences are the key element underlying economic outcomes that involve interactions with peers. Key Words: Social Networks; Linear-In-Means Model; Spatial Autoregression Model; Social Norms JEL No. A14, C21, D85, R21, Z13
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Bibliographic InfoPaper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 158.
Length: 21 pages
Date of creation: Sep 2013
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Find related papers by JEL classification:
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-NET-2013-10-25 (Network Economics)
- NEP-SOC-2013-10-25 (Social Norms & Social Capital)
- NEP-URE-2013-10-25 (Urban & Real Estate Economics)
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