Data and Code for: Thy Neighbor’s Misfortune: Peer Effect on Consumption

Principal Investigator(s):  View help for Principal Investigator(s) Sumit Agarwal, NUS Business School; Wenlan Qian, NUS Business School; Xin Zou, Hong Kong Baptist University

Version:  View help for Version V2

Name File Type Size Last Modified
ConstructAnalysisData.do text/x-stata-syntax 18.4 KB 07/24/2020 06:12:PM
ProgramAppendix.do text/x-stata-syntax 44 KB 07/22/2020 10:35:PM
ProgramMain.do text/x-stata-syntax 29.3 KB 07/22/2020 10:35:PM
README.pdf application/pdf 243.5 KB 08/18/2020 11:37:PM

Project Citation: 

Agarwal, Sumit, Qian, Wenlan, and Zou, Xin. Data and Code for: Thy Neighbor’s Misfortune: Peer Effect on Consumption. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-04-07. https://doi.org/10.3886/E119962V2

Project Description

Summary:  View help for Summary Using a large, representative sample of credit and debit card transactions in Singapore, this paper studies the consumption response of individuals whose same-building neighbors experienced personal bankruptcy. The unique bankruptcy rules in Singapore suggest liquidity shocks drive personal bankruptcy decisions, leading to a substantial drop in consumption for the bankrupt. Peers’ monthly card consumption decreases by 3.4 percent over the one-year post-bankruptcy period. There exists no consumption decrease among individuals in immediately adjacent buildings, nor for consumers with diminished post-event social ties with the bankrupt. The findings imply a significant social multiplier effect of 2.8 times the original consumption shock.

Scope of Project

JEL Classification:  View help for JEL Classification
      D12 Consumer Economics: Empirical Analysis
      D14 Household Saving; Personal Finance
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      E21 Macroeconomics: Consumption; Saving; Wealth
      E51 Money Supply; Credit; Money Multipliers
      E62 Fiscal Policy
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      H31 Fiscal Policies and Behavior of Economic Agents: Household
Geographic Coverage:  View help for Geographic Coverage Singapore
Time Period(s):  View help for Time Period(s) 4/2010 – 3/2012

Methodology

Data Source:  View help for Data Source Supreme Court of Singapore, Government of Singapore, DBS bank, EZ Link
Unit(s) of Observation:  View help for Unit(s) of Observation individual, year-month

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Published Versions

V2 [2021-04-07]

V1 [2020-06-18]

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