Economic Shocks and Subjective Well-Being: Evidence from a Quasi-Experiment

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Economic Shocks and Subjective Well-Being: Evidence from a Quasi-Experiment

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dc.contributor.author Hariri, Jacob Gerner
dc.contributor.author Bjørnskov, Christian
dc.contributor.author Justesen, Mogens K.
dc.date.accessioned 2014-03-03T09:23:41Z
dc.date.available 2014-03-03T09:23:41Z
dc.date.issued 2014-03-03
dc.identifier.uri http://hdl.handle.net/10398/8892
dc.description.abstract This paper examines how economic shocks affect individual well-being in developing countries. Using the case of a sudden and unanticipated currency devaluation in Botswana as a quasi-experiment, we examine how this monetary shock affects individuals’ evaluations of well-being. We do so by using micro-level survey data, which – incidentally – was collected in the days surrounding the devaluation. The chance occurrence of the devaluation during the time of the survey enables us to use pre-treatment respondents, surveyed before the devaluation, as approximate counterfactuals for post-treatment respondents, surveyed after the devaluation. Our estimates show that the devaluation had a large and significantly negative effect on individuals’ evaluations of subjective well-being. These results suggest that macroeconomic shocks, such as unanticipated currency devaluations, may have significant short-term costs in the form of reductions in people’s sense of well-being. en_US
dc.format.extent 32 en_US
dc.language eng en_US
dc.subject.other Subjective well-being en_US
dc.subject.other Economic shocks en_US
dc.subject.other Currency devaluation en_US
dc.subject.other Quasi-experiment en_US
dc.title Economic Shocks and Subjective Well-Being: Evidence from a Quasi-Experiment en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Department of Business and Politics en_US
dc.contributor.departmentshort DBP en_US
dc.contributor.departmentuk Department of Business and Politics en_US
dc.contributor.departmentukshort DBP en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2013 en_US


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