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Social Influence and the Consumer Bankruptcy Decision

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  • Jonathan D. Fisher

Abstract

I examine the influence of neighbors on the consumer bankruptcy decision using administrative bankruptcy records linked the 2000 Decennial Census. Two empirical strategies remove unobserved common factors that affect identification. The first strategy uses small geographical areas to isolate neighborhood effects, and the second strategy identifies the effect using past bankruptcy filers who moved states. The findings from both strategies reinforce each other and confirm the role of social influence on the bankruptcy decision. Having a past bankruptcy filer move into the block from a different state increases the likelihood of filing by 10 percent.

Suggested Citation

  • Jonathan D. Fisher, 2017. "Social Influence and the Consumer Bankruptcy Decision," Working Papers 17-60, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:17-60
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    File URL: https://www2.census.gov/ces/wp/2017/CES-WP-17-60.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Personal bankruptcy; program participation; social influence;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • K35 - Law and Economics - - Other Substantive Areas of Law - - - Personal Bankruptcy Law

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