IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v221y2024icp350-365.html
   My bibliography  Save this article

Where does money matter more?

Author

Listed:
  • Svavarsdottir, Gudrun
  • Clark, Andrew E.
  • Stefansson, Gunnar
  • Asgeirsdottir, Tinna Laufey

Abstract

There is much still to learn about the relationship between income and well-being, and in particular how this may depend on the economic and social context. We use Russian data to estimate individual Welfare Functions of Income, and examine two potentially context-dependent concepts: self-assessed income needs and welfare sensitivity to income (how well-being changes with income). The considerable geographical diversity in Russia provides within-country variation in GDP, inequality, population density, and unemployment. We first show that income needs exceed actual income on average in Russia, and that these needs are less sensitive to changes in income than in other countries. Second, income needs vary by individual characteristics, while welfare sensitivity does not. Welfare sensitivity is however related to the regional context. Last, our estimated contextual results help us to understand why the existing literature has produced such a wide range of results.

Suggested Citation

  • Svavarsdottir, Gudrun & Clark, Andrew E. & Stefansson, Gunnar & Asgeirsdottir, Tinna Laufey, 2024. "Where does money matter more?," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 350-365.
    • Handle: RePEc:eee:jeborg:v:221:y:2024:i:c:p:350-365
    DOI: 10.1016/j.jebo.2024.03.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268124001161
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2024.03.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:221:y:2024:i:c:p:350-365. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.