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The impact of local shocks on well-being: Only a matter of perception?

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  • Stein, Wiebke
  • Weisser, Reinhard A.

Abstract

This paper investigates how witnessing adverse events affects individuals' perceptions and consequently their personal subjective well-being. In order to do so, we compare material well-being dynamics with changes in subjective well-being. We link GIS data on local flood shocks to an extensive household sample from rural Southeast Asia. This allows us to contrast individuals who actually experienced a shock with those who did not. We find that the mere proximity to a potentially adverse flood shock, without any direct impact on a household's material well-being, can be sufficient to affect subjective well-being.

Suggested Citation

  • Stein, Wiebke & Weisser, Reinhard A., 2018. "The impact of local shocks on well-being: Only a matter of perception?," Hannover Economic Papers (HEP) dp-634, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-634
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    References listed on IDEAS

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    More about this item

    Keywords

    perception; subjective well-being; GIS data; MODIS flood mapping;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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