Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does money affect happiness and self-esteem? The poor borrowers' perspective in a quasi-natural experiment

Contents:

Author Info

  • Becchetti, Leonardo

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Castriota, Stefano

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

Research on the nexus between life satisfaction and income has looked at lottery winners or postcommunism transition to document that exogenous changes in income generate effects of the same sign on happiness. In this paper we consider the unfortunate tsunami event as a negative lottery and examine the effects of the tsunami related income losses, net of the most ample possible set of concurring factors, on life satisfaction and self-esteem of a sample of Sri Lankan microfinance borrowers. Our empirical findings help to discriminate between various effects of material damages and monetary losses, both having strong significant impact on the dependent variables. Our contribution to the literature is in: i) identifying an exogenous shock which is temporary and does not suffer from voluntary participation bias (unfortunate "winners" of the negative lottery, exactly as control sample, did not decide to buy the lottery ticket); ii) testing the money-happiness nexus on a sample of individuals close to the poverty line.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.aiccon.it/file/convdoc/WP_48.pdf
File Function: Full text
Download Restriction: no

Bibliographic Info

Paper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 48-2008.

as in new window
Length: 31 pages
Date of creation: 06 Feb 2008
Date of revision:
Handle: RePEc:ris:aiccon:2008_048

Contact details of provider:
Postal: P.le della Vittoria, 15 - 47100 Forlì, Italy
Phone: +39 0543 62327
Fax: +39 0543 374676
Email:
Web page: http://www.aiccon.it/
More information through EDIRC

Related research

Keywords: life satisfaction; quasi natural experiment; tsunami; natural catastrophe;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Julia S. Cheney & Sherrie L.W. Rhine, 2006. "How effective were the financial safety nets in the aftermath of Katrina?," Payment Cards Center Discussion Paper 06-01, Federal Reserve Bank of Philadelphia.
  2. Alberto Alesina & Rafael Di Tella & Robert MacCulloch, 2001. "Inequality and Happiness: Are Europeans and Americans Different?," Harvard Institute of Economic Research Working Papers 1938, Harvard - Institute of Economic Research.
  3. Stutzer, Alois & Frey, Bruno S., 2005. "Does Marriage Make People Happy, Or Do Happy People Get Married?," IZA Discussion Papers 1811, Institute for the Study of Labor (IZA).
  4. Paul Frijters & Ingo Geishecker & John P. Haisken-DeNew & Michael A. Shields, 2006. "Can the Large Swings in Russian Life Satisfaction be Explained by Ups and Downs in Real Incomes?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(3), pages 433-458, October.
  5. Frijters, Paul, 2000. "Do individuals try to maximize general satisfaction?," Journal of Economic Psychology, Elsevier, vol. 21(3), pages 281-304, June.
  6. Shiv, Baba & Huber, Joel, 2000. " The Impact of Anticipating Satisfaction on Consumer Choice," Journal of Consumer Research, University of Chicago Press, vol. 27(2), pages 202-16, September.
  7. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June.
  8. Mark Evan Edwards & Robert Plotnick & Marieka Klawitter, 2001. "Do Attitudes and Personality Characteristics Affect Socioeconomic Outcomes? The Case of Welfare Use by Young Women," Social Science Quarterly, Southwestern Social Science Association, vol. 82(4), pages 817-843.
  9. Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," World Bank Economic Review, World Bank Group, vol. 4(3), pages 351-66, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Perez Truglia, Ricardo Nicolas & Bottan, Nicolas Luis, 2008. "Deconstructing the Hedonic Treadmill: Is Happiness Autoregressive?," MPRA Paper 20340, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ris:aiccon:2008_048. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paolo Venturi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.