Lewbel, Arthur; Norris, Samuel; Pendakur, Krishna; Qu, Xi - In: Quantitative economics : QE ; journal of the … 13 (2022) 3, pp. 1257-1295
We construct a peer effects model where mean expenditures of consumers in one's peer group affect utility through perceived consumption needs. We provide a novel method for obtaining identification in social interactions models like ours, using ordinary survey data, where very few members of...