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Regional disparities in subjective well-being : a spatial econometric approach

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  • Takeshi, Aida

Abstract

This study aims to explore spatial externalities in subjective well-being (SWB) as sources of regional disparities. Although previous studies have shown positive externalities in SWB, the estimated effect is frequently confounded by unobserved regional heterogeneities, which can be sources of regional disparities. Using a household panel dataset collected in South Africa, the study estimates spatial econometric models with fixed effects to show spatial externalities in SWB by explicitly controlling for unobserved heterogeneities at the individual and regional levels. Estimation results indicate strong spatial dependence on SWB, confirming that spatial externalities within and across geographical clusters are essential factors for explaining regional disparities.

Suggested Citation

  • Takeshi, Aida, 2020. "Regional disparities in subjective well-being : a spatial econometric approach," IDE Discussion Papers 766, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper766
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    More about this item

    Keywords

    subjective well-being; spillover effect; regional disparities; spatial econometrics; Local economy;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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