Research into the Effects of Social Network on Household Debt Defaults

Dungang Zang, Jiahui Chen

Abstract

Based on the data from the Rural Urban Migration in China 2009, this paper explores the effects of social networks on household debt defaults. Furthermore,we use immigrants’ communication expenses and the ranking of their brothers and sisters to deal with the possible endogenous bias and draw some conclusions after robustness tests. Our analysis suggests that the effects of social networks belong to immigrants on household debt defaults are significant and positive. In addition, our study helps to understand the mechanism of social networks to rural household debt defaults, provides valuable policy recommendations to reduce household debt default rates.

References

  1. Jinjin Shan, J., In Issues in Cities, 2007, (3): 59-63., Variation of migrate workers' social networks.
  2. Joanna Stavins, J., In New England Economic Review,2000, (2):15-30., Credit Card Borrowing,Delinquency,and Personal Bankruptcy.
  3. KaiTong Tan, D., A master dissertation of Hunan university,2012, Reaserch into the effect of social networks on migrate workers' loan.
  4. McKinsey Global Institute, N., Debt and deleveraging:Uneven progress on the path to growth, Insights & Publications, 2012, (1): 45-66.
  5. Oleg Lugovoy, J., In Arrears in Russian Economic Trends, 2002, (2) : 19-30., a Transition Economy:the Mechanism of Contagion.
  6. Pierre Bourdieu, Z., In Greenwood, New York , 1986: 241-258, The Forms of Capital.
  7. Selcuk Caner, Manouchehr Mokhtari, J., In Economics Quarterly, 2000, (5):27-53., Arrears and their implications for economic performance in the Russian federation
  8. Xinhua Guo, D., A doctor dissertation of Huazhong university, 2006, Household loans, default and bankruptcy.
  9. Xinhua GUO, Bin Chen, Wu Zhaihua, J., In Statistics and decisions, 2015,(4):96-99., Empirical study for connection between changing of Chinese demographic and increase in household debt defaults
  10. Xin Qi, J., In Journal of Jiangsu administration institute, 2007,(3):75-79., Extend and construct: New generation of workers' social networks.
  11. Yike Ren, J., In Society, 2008,(5):20-40., Analysis in cohesive subgroups of Chinese migrate workers' social networks.
Download


Paper Citation


in Harvard Style

Zang D. and Chen J. (2016). Research into the Effects of Social Network on Household Debt Defaults . In ISME 2016 - Information Science and Management Engineering IV - Volume 1: ISME, ISBN 978-989-758-208-0, pages 25-30. DOI: 10.5220/0006443100250030


in Bibtex Style

@conference{isme16,
author={Dungang Zang and Jiahui Chen},
title={Research into the Effects of Social Network on Household Debt Defaults},
booktitle={ISME 2016 - Information Science and Management Engineering IV - Volume 1: ISME,},
year={2016},
pages={25-30},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006443100250030},
isbn={978-989-758-208-0},
}


in EndNote Style

TY - CONF
JO - ISME 2016 - Information Science and Management Engineering IV - Volume 1: ISME,
TI - Research into the Effects of Social Network on Household Debt Defaults
SN - 978-989-758-208-0
AU - Zang D.
AU - Chen J.
PY - 2016
SP - 25
EP - 30
DO - 10.5220/0006443100250030