Beyond the Joneses: Inter-country income comparisons and happiness

Becchetti, Leonardo; Castriota, Stefano; Corrado, Luisa; Ricca, Elena Giachin

doi:10.1016/j.socec.2013.05.009

Cited by 34 publications

(34 citation statements)

References 27 publications

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“…Instead we shall assume that the change in composition of the basket of goods does happen and has an impact for emissions. Moreover, the composition of the consumption basket can be also the result of a process of assimilation that includes learning of new habits by migrants and even the imitation of conspicuous consumption in the host country (see Becchetti, Castriota and Giachin Ricca, 2010, who also indicate that in the modern world habits are copied from other economies even without migration).…”

Section: The Inclusion Of New "Needs" As Transportation and Electricimentioning

confidence: 99%

Climate Change and Migration: A CGE Analysis for Two Large Urban Regions of Latin America

Chisari¹,

Miller²

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed. Terms of use: Documents inAny dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. Migration is one of the strategies used by populations to adapt to natural shocks and also to respond to economic policies. Climate change will probably have an impact on the productivity of factors and on the health of the population of the Latin America and Caribbean region, triggering migrations. In addition, policies aimed at reducing emissions (like carbon taxes) will change relative prices and the remuneration of factors and, in turn, will alter the allocation of labor between urban and rural areas. This paper explores the potential quantitative relevance of those population movements using a CGE version of the Harris-Todaro model. Two paradigmatic cases are considered: i) domestic or internal migrations, focusing on the case of Sao Paulo (Brazil) and ii) international migrations, analyzing the displacement of population from Bolivia and Paraguay to Argentina.JEL classifications: C68, J61, R13, R23

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Section: The Inclusion Of New "Needs" As Transportation and Electricimentioning

confidence: 99%

Climate Change and Migration: A CGE Analysis for Two Large Urban Regions of Latin America

Chisari¹,

Miller²

2016

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“…The explanation provided by the authors is that people compare themselves more with people they interact with more frequently. Becchetti et al (2013) show that income comparisons also happen internationally by looking at the impact of GDI per capita of neighboring countries on life satisfaction. Furthermore they show that this relationship is dependent on exposure to media.…”

Section: The Importance Of Relative Incomementioning

confidence: 99%

“…Although several authors (Clark and Senik 2011;Graham 2005) have suggested that globalization could have changed reference groups, relatively few papers (e.g. Becchetti et al 2013) have tested the possibility that comparisons of income could also happen internationally. Becchetti et al (2013) find that the GDI per capita of neighboring countries has a negative impact on life satisfaction in Europe.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis

Schalembier

2015

Soc Indic Res

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The cause of international differences in life satisfaction is usually ascribed to differences in living standards. Yet, despite improving living standards in a lot of middleincome countries, significant differences in life satisfaction between middle-and highincome countries remain. This paper examines if there is an international comparison effect and assesses to what extent the relative income hypothesis can be applied to explain international differences in life satisfaction. We test this by analyzing how exposure to other countries impacts life satisfaction. It is hypothesized that higher exposure to other countries in low-and middle-income countries has a negative effect due to increased aspirations and relative deprivation, while the opposite holds true for rich countries. We draw on data from the World Value Survey, the World Bank and the KOF Globalization index to perform a multilevel analysis. The results suggest that an international comparison effect indeed exists and is capable of partially explaining international differences in life satisfaction. Additional analyses reveal that people in lower income classes, in all countries, are affected more by exposure to other countries, indicating that individual characteristics are important when assessing the impact of exposure on life satisfaction. We demonstrate the robustness of these findings by showing that both sub-indicators of exposure, informational flow and international contact, have an impact on life satisfaction that is similar to that of our overall exposure-index.

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“…Yet, both the empirical literature on relative consumption and well-being 1 and the (predominantly) theoretical literature dealing with optimal policyresponses to relative consumption concerns 2 have almost exclusively been concerned with consumption comparisons within countries, and have hence ignored between-country comparisons. Becchetti et al (2010) constitute a recent exception in the empirical literature.…”

Section: Introductionmentioning

confidence: 99%

When Samuelson Met Veblen Abroad: National and Global Public Good Provision when Social Comparisons Matter

Aronsson

Johansson‐Stenman

2013

Economica

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This paper derives Pareto efficient policy rules for the provision of national as well as global public goods in a two-country world, where each individual cares about relative consumption within as well as between countries. Furthermore, we compare these policy rules with those that follow from a non-cooperative Nash equilibrium. The results show that both global and national public goods are systematically under-provided in Nash equilibrium under such relative consumption concerns.

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Beyond the Joneses: Inter-country income comparisons and happiness

Cited by 34 publications

References 27 publications

Climate Change and Migration: A CGE Analysis for Two Large Urban Regions of Latin America

Climate Change and Migration: A CGE Analysis for Two Large Urban Regions of Latin America

The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis

When Samuelson Met Veblen Abroad: National and Global Public Good Provision when Social Comparisons Matter

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