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on Economics of Happiness |
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Issue of 2011‒04‒16
three papers chosen by |
| By: | Solava Ibrahim |
| Abstract: | Poverty is usually associated with powerlessness, vulnerability and above all failure of aspirations. Poor people might not be able to achieve their capabilities, but this does not mean that they do not have aspirations they wish to fulfil. The concept of aspirations has been explored in the fields of economics, anthropology, psychology and philosophy, but not extensively in development studies. The aim of the paper is to present a conceptual framework for analysing aspirations based on the capability approach and to apply a new methodology to articulate these aspirations. Using Egypt as a case study, the voices of the poor reveal the interrelationships between failure of aspirations, which not only leads to a downward spiral, but also to an intergenerational transfer of aspirations’ failure. The paper concludes that identifying and addressing the causal relationship between poverty, aspirations and wellbeing could be the starting point for effective and more relevant development policies that help poor people to achieve their aspired but unfulfilled capabilities. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:14111&r=hap |
| By: | Florencia DEVOTO (Paris School of Economics and J-PAL); Esther DUFLO (MIT and NBER); Pascaline DUPAS (UCLA and NBER); William PARIENTE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Vincent PONS (MIT (Massachusetts Institute of Technology)) |
| Abstract: | We study the demand for household water connections in urban Morocco, and the effect of such connections on household welfare. In the northern city of Tangiers, among homeowners without a private connection to the city’s water grid, a random subset was offered a simplified procedure to purchase a household connection on credit (at a zero percent interest rate). Take-up was high, at 69%. Because all households in our sample had access to the water grid through free public taps (often located fairly close to their homes), household connections did not lead to any improvement in the quality of the water households consumed; and despite significant increase in the quantity of water consumed, we find no change in the incidence of waterborne illnesses. Nevertheless, we find that households are willing to pay a substantial amount of money to have a private tap at home. Being connected generates important time gains, which are used for leisure and social activities, rather than productive activities. Because water is often a source of tension between households, household connections improve social integration and reduce conflict. Overall, within 6 months, self-reported well-being improved substantially among households in the treatment group, despite the financial cost of the connection. Our results suggest that facilitating access to credit for households to finance lump sum quality-of-life investments can significantly increase welfare, even if those investments do not result in income or health gains. |
| Date: | 2011–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2011013&r=hap |
| By: | Clark, Andrew E.; Senik, Claudia |
| Abstract: | This paper asks what low-income countries can expect from growth in terms of happiness. It interprets the set of available international evidence pertaining to the relationship between income growth and subjective well-being. Conforming to the Easterlin paradox, higher income always correlates with higher happiness, except in one case: whether national income growth yields higher well-being is still hotly debated; essentially, the question is whether the correlation coefficient is “too small to matter”. The explanations for the small correlation between income growth and subjective well-being over time appeal to the nature of growth itself (e.g. negative side-effects such as pollution), and to the psychological importance of relative concerns and adaptation. The available evidence contains two important lessons: income comparisons do seem to affect subjective well-being even in very poor countries; however, adaptation may be more of a rich country phenomenon. Our stand is that the idea that growth will increase happiness in low-income countries cannot be rejected on the basis of the available evidence. First, cross-country time-series analyses are based on aggregate measures, which are less reliable than individual ones. Second, development is a qualitative process that involves take-offs and thresholds. Such regime changes are eye-visible through the lens of subjective satisfaction measures. The case of Transition countries is particularly impressive in this respect: average life satisfaction scores closely mirror changes in GDP for about the first ten years of the transition process, until the regime becomes more stable. If subjective measures of well-being were made available in low-income countries, they would certainly help measuring and monitoring the different stages and dimensions of the development process. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:1024&r=hap |