Household finances and social interaction: Bayesian analysis of household panel data

Publication type

Journal Article

Authors

Publication date

September 15, 2016

Summary:

We investigate the relationship between social interaction and household finances using the British Household Panel Survey. We explore the relationship between a wide range of aspects of household finances and social interaction, rather than focusing on one particular facet of household finances, such as the holding of stocks and shares. We develop a Bayesian statistical framework to simultaneously explore both sides of the household balance sheet—liabilities and assets. Additionally, we allow the influence of social interaction on household finances to be time dependent, enabling us to model the effects of social interaction from a dynamic perspective. We also develop a two-part model to jointly investigate the influence of social interaction on the amount of different types of debt and financial assets held conditional on holding the different types of debt and assets. Our analysis suggests that social interaction is associated with households holding larger amounts of debt and assets.

Published in

Review of Income and Wealth

Volume and page numbers

Volume: 62 , p.467 -488

DOI

http://dx.doi.org/10.1111/roiw.12174

ISSN

346586

Subjects

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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