• The Impacts of Interpersonal Networks on Households’ Financial Service Expenditures: Cross-Year Quantile Regression Analysis for Taiwan Households

Abstract

Following the rise of behavioral finance, interpersonal networks have gradually earned attentions in Finance. Using the dataset of 2000~2004 National Survey of Households’ Income and Expenditures in Taiwan, we construct quantile regression models to examine the impacts of interpersonal networks on households’ financial service expenditures. According to our empirical analysis results, the more intensive is the interpersonal network, the more is expended in financial services. Moreover, the quantile regression models estimated demonstrate that the households of high quantile are more impacted by interpersonal networks than the median and low quantiles, indicating the characteristics of M-type society.

Keywords: Interpersonal Network, Financial Service Expenditures, Behavioral Finance, Quantile Regression