Social networks and household consumption

This paper analyzes the impact of social networks on household consumption by selecting data from Peking University's China Family Tracking Survey (CFPS) as a research sample. It is found that there is a pronounced circle effect in social networks among families, which makes social networks show convergence and modeling effects, thus increasing the consumption level of families. In addition, social networks can increase the motivation of families to borrow money from relatives and friends. In contrast, social networks bring rich human resources to families and improve the ability of families to resist risks, thus increasing the level of family consumption.