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Feeling Richer or Poorer than Others: A Cross-section and Panel Analysis of Subjective Economic Status in Indonesia

  • Nattavudh Powdthavee

This paper examines what makes us feel richer or poorer than others. It investigates cross-sectional and longitudinal determinants of individuals' subjective economic status in Indonesia. Using two waves of Indonesian Family Life Surveys, 1997 and 2000, I show that individuals' perceptions of where they are on the economic scale are more dependent on a number of socioeconomic characteristics, as well as their attitudes towards their future economic status, than their current spending capacities would suggest. I also find significant, albeit weaker, expenditure and income effects on individuals' subjective economic status once individual fixed effects are controlled for in the regression. Copyright 2007 The Authors Journal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd .

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Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 21 (2007)
Issue (Month): 2 (06)
Pages: 169-194

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Handle: RePEc:bla:asiaec:v:21:y:2007:i:2:p:169-194
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