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

dc.contributor.author Hariri, Jacob Gerner
dc.contributor.author Bjørnskov, Christian
dc.contributor.author Justesen, Mogens K.
dc.date.accessioned 2015-03-30T21:42:13Z
dc.date.available 2015-03-30T21:42:13Z
dc.date.issued 2015-03
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
dc.identifier.uri http://hdl.handle.net/10986/21648
dc.language.iso en_US
dc.publisher World Bank Group, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 7209
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject subjective well-being
dc.subject economic shocks
dc.subject currency devaluation
dc.subject quasi-experiment
dc.title Economic Shocks and Subjective Well-Being en
dc.title.subtitle Evidence from a Quasi-Experiment en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.associatedcontent https://openknowledge.worldbank.org/handle/10986/27692 Journal Article (version of record)
okr.date.disclosure 2015-03-10
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.globalpractice Poverty
okr.globalpractice Finance and Markets
okr.globalpractice Macroeconomics and Fiscal Management
okr.identifier.doi 10.1596/1813-9450-7209
okr.identifier.report WPS7209
okr.language.supported en
okr.region.administrative Africa
okr.region.country Botswana
okr.topic Macroeconomics and Economic Growth :: Economic Conditions and Volatility
okr.topic Macroeconomics and Economic Growth :: Economic Insecurity
okr.topic Poverty Reduction :: Development Patterns and Poverty
okr.topic Poverty Reduction :: Living Standards
okr.topic Poverty Reduction :: Pro-Poor Growth
okr.topic Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic Finance and Financial Sector Development :: Financial Crisis Management & Restructuring
okr.unit Development Policy Department, Development Economics Vice Presidency
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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