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Do monetary subjective well-being evaluations vary across space? Comparing continuous and discrete spatial heterogeneity

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  • Mauricio Sarrias

Abstract

Using subjective well-being estimations, this study analyzes whether compensating variations vary across space using a cross-sectional data set from Chile. To achieve this goal, it describes and compares two econometric ways of modelling unobserved spatial heterogeneity. Both approaches allow compensating variations to vary across spatial units by assuming some distribution a priori. One method assumes that the spatial heterogeneity can be represented by a discrete distribution (a group of regions that share the same coefficient) and the other that the preferences can be represented by a continuous distribution (each region has a different coefficient). The results show that focusing just on the average estimates of compensating variations, as the applied studies have done so far, masks useful local variation. More empirical studies are needed to assess the advantages and disadvantages of both econometric approaches and how their results compare across a wide range of conditions and samples.

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  • Mauricio Sarrias, 2019. "Do monetary subjective well-being evaluations vary across space? Comparing continuous and discrete spatial heterogeneity," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(1), pages 53-87, January.
    • Handle: RePEc:taf:specan:v:14:y:2019:i:1:p:53-87
    DOI: 10.1080/17421772.2018.1485968
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    Cited by:

    1. Gabriel Rodríguez-Puello & Ariel Arcos & Benjamin Jara, 2022. "Would you Value a few More Hours of work? Underemployment and Subjective Well-Being Across Chilean Workers," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 885-912, April.
    2. Diana Romero‐Espinosa & Mauricio Sarrias & Ricardo Daziano, 2021. "Are preferences for city attributes heterogeneous? An assessment using a discrete choice experiment," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 251-272, February.
    3. Tomás Cox & Ricardo Hurtubia, 2021. "Latent Segmentation of Urban Space through Residential Location Choice," Networks and Spatial Economics, Springer, vol. 21(1), pages 199-228, March.
    4. Jianbo Luo, 2020. "A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness," Journal of Happiness Studies, Springer, vol. 21(7), pages 2603-2628, October.
    5. Mauricio Sarrias, 2020. "Random Parameters and Spatial Heterogeneity using Rchoice in R," REGION, European Regional Science Association, vol. 7, pages 1-19.

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