Economic Shocks and Subjective Well-Being


Union Jack

Economic Shocks and Subjective Well-Being

Show simple item record Hariri, Jacob Gerner Bjørnskov, Christian Justesen, Mogens K. 2015-05-06T07:10:08Z 2015-05-06T07:10:08Z 2015-05-06
dc.description.abstract This article 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, the article examines how this monetary shock affects individuals’ evaluations of well-being. This is done by using microlevel survey data, which—incidentally— were collected in the days surrounding the devaluation. The chance occurrence of the devaluation during the time of the survey enables us to use pretreatment respondents, surveyed before the devaluation, as approximate counterfactuals for post-treatment respondents, surveyed after the devaluation. 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 39 en_US
dc.language eng en_US
dc.publisher World Bank Group en_US
dc.relation.ispartofseries Policy Research Working Paper;7209
dc.title Economic Shocks and Subjective Well-Being 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 www en_US
dc.publisher.year 2015 en_US
dc.title.subtitle Evidence from a Quasi-Experiment en_US

Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
Justesen Hariri Bjørnskov 2015 WPS7209.pdf 1.076Mb PDF View/Open Working paper

This item appears in the following Collection(s)

Show simple item record