Network effects in household consumption patterns: Evidence from northern Ghana

We study peer effects in consumption patterns and their associated welfare implications among rural farm households in northern Ghana using a panel data set. We construct a social interaction network based on household-specific locations and employ a spatial econometric approach that leverages the s...

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Main Authors: Bedi, Shaibu Mellon, Kornher, Lukas, Kotu, Bekele Hundie, Azzarri, Carlo
Format: Journal Article
Language:Inglés
Published: Wiley 2026
Subjects:
Online Access:https://hdl.handle.net/10568/175445
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author Bedi, Shaibu Mellon
Kornher, Lukas
Kotu, Bekele Hundie
Azzarri, Carlo
author_browse Azzarri, Carlo
Bedi, Shaibu Mellon
Kornher, Lukas
Kotu, Bekele Hundie
author_facet Bedi, Shaibu Mellon
Kornher, Lukas
Kotu, Bekele Hundie
Azzarri, Carlo
author_sort Bedi, Shaibu Mellon
collection Repository of Agricultural Research Outputs (CGSpace)
description We study peer effects in consumption patterns and their associated welfare implications among rural farm households in northern Ghana using a panel data set. We construct a social interaction network based on household-specific locations and employ a spatial econometric approach that leverages the structure of the peer networks to identify peer effects. The results indicate that peers' consumption patterns significantly influence individual consumption decisions, with the magnitude of this effect varying across farm households depending on their resource endowments. We also find that information exchange and partial risk-sharing behaviors drive these peer effects. Overall, our findings suggest that government interventions aimed at enhancing household consumption through transfers would be more effective if targeted at households with relatively large peer networks. In addition, anti-poverty and income-improvement programs can leverage peer networks to enhance their overall impact.
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spelling CGSpace1754452026-01-02T15:32:42Z Network effects in household consumption patterns: Evidence from northern Ghana Bedi, Shaibu Mellon Kornher, Lukas Kotu, Bekele Hundie Azzarri, Carlo household consumption networks behaviour We study peer effects in consumption patterns and their associated welfare implications among rural farm households in northern Ghana using a panel data set. We construct a social interaction network based on household-specific locations and employ a spatial econometric approach that leverages the structure of the peer networks to identify peer effects. The results indicate that peers' consumption patterns significantly influence individual consumption decisions, with the magnitude of this effect varying across farm households depending on their resource endowments. We also find that information exchange and partial risk-sharing behaviors drive these peer effects. Overall, our findings suggest that government interventions aimed at enhancing household consumption through transfers would be more effective if targeted at households with relatively large peer networks. In addition, anti-poverty and income-improvement programs can leverage peer networks to enhance their overall impact. 2026 2025-07-02T16:12:28Z 2025-07-02T16:12:28Z Journal Article https://hdl.handle.net/10568/175445 en https://hdl.handle.net/10568/148741 Open Access Wiley Bedi, Shaibu Mellon; Kornher, Lukas; Kotu, Bekele Hundie; and Azzarri, Carlo. Network effects in household consumption patterns: Evidence from northern Ghana. Review of Development Economics. Article in press. First published online June 22, 2025. https://doi.org/10.1111/rode.13266
spellingShingle household consumption
networks
behaviour
Bedi, Shaibu Mellon
Kornher, Lukas
Kotu, Bekele Hundie
Azzarri, Carlo
Network effects in household consumption patterns: Evidence from northern Ghana
title Network effects in household consumption patterns: Evidence from northern Ghana
title_full Network effects in household consumption patterns: Evidence from northern Ghana
title_fullStr Network effects in household consumption patterns: Evidence from northern Ghana
title_full_unstemmed Network effects in household consumption patterns: Evidence from northern Ghana
title_short Network effects in household consumption patterns: Evidence from northern Ghana
title_sort network effects in household consumption patterns evidence from northern ghana
topic household consumption
networks
behaviour
url https://hdl.handle.net/10568/175445
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AT azzarricarlo networkeffectsinhouseholdconsumptionpatternsevidencefromnorthernghana