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Do People in Income Poverty Use Their Income Efficiently?: a Subjective Well-Being Approach

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  • Mariano Rojas

Abstract

A subjective well-being approach is followed to assess the magnitude of inefficiency in the use of income. The information comes from a Mexican survey and an X-inefficiency technique is used. The paper shows that there exists substantial inefficiency in the use of income at all income levels, even for those in income poverty. It is shown that inefficiency is significantly related to practices, attitudes, and motivations for consuming.

Suggested Citation

  • Mariano Rojas, 2012. "Do People in Income Poverty Use Their Income Efficiently?: a Subjective Well-Being Approach," WIDER Working Paper Series wp-2012-110, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-110
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-110.pdf
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    Keywords

    Income; Poverty;

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