Isolation and Subjective Welfare: Evidence from South Asia
AbstractUsing detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. We examine how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation. (c) 2009 by The University of Chicago. All rights reserved..
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Economic Development and Cultural Change.
Volume (Year): 57 (2009)
Issue (Month): 4 (07)
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Web page: http://www.journals.uchicago.edu/EDCC/
Other versions of this item:
- Fafchamps, Marcel & Shilpi, Forhad, 2008. "Isolation and subjective welfare : evidence from South Asia," Policy Research Working Paper Series 4535, The World Bank.
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- Beegle, Kathleen & Himelein, Kristen & Ravallion, Martin, 2012. "Frame-of-reference bias in subjective welfare," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 556-570.
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