The psychology and behavioural economics of poverty

Anand, Paul; Lea, Stephen E. G.

doi:10.1016/j.joep.2010.11.004

Cited by 49 publications

(32 citation statements)

References 49 publications

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“…satisfaction with health, education and work, adequacy of consumption), the specific reference group that an individual may chose for social comparison purposes and psychological correlates of poverty. These issues are relevant for understanding the determinants of well-being even in a low income country context (for a discussion, see Anand and Lea, 2011). Future investigation into subjective well-being data should take into account these issues to identify social aspects of poverty dynamics in Bangladesh.…”

Section: Resultsmentioning

confidence: 99%

Subjective well-being and relative poverty in rural Bangladesh

Asadullah

Chaudhury

2012

Journal of Economic Psychology

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Subjective Well-Being and Relative Poverty in Rural Bangladesh * This paper revisits the debate over the importance of absolute vs. relative income as a correlate of subjective well-being using data from Bangladesh, one of the poorest countries in the world with high levels of corruption and poor governance. We do so by combining household data with population census and village survey records. Our results show that conditional on own household income, respondents report higher satisfaction levels when they experience an increase in their income over the past years. More importantly, individuals who report their income to be lower than their neighbours in the village also report less satisfaction with life. At the same time, our evidence suggests that relative wealth effect is stronger for the rich. Similarly, in villages with higher inequality, individuals report less satisfaction with life. However, when compared to the effect of absolute income, these effects (i.e. relative income and local inequality) are modest. Amongst other factors, we study the influence of institutional quality. Institutional quality, measured in terms of confidence in police, matters for well-being: it enters with a positive and significant coefficient in the wellbeing function. JEL Classification:O12, I30, I31

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Section: Resultsmentioning

confidence: 99%

Subjective well-being and relative poverty in rural Bangladesh

Asadullah

Chaudhury

2012

Journal of Economic Psychology

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“…The socioeconomic hierarchy is one of the most prominent ways in which power and status is distributed in contemporary societies. Yet it is only recently that researchers have attempted to understand the psychological impact of one's socioeconomic position (see (1)(2)(3)(4)). This review focuses on how the experience of low socioeconomic status affects cognition and decision-making in ways that matter for life outcomes.…”

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confidence: 99%

The effects of low socioeconomic status on decision-making processes

Sheehy‐Skeffington

2020

Current Opinion in Psychology

112

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Low income groups are often criticised for making decisions that harm their long-term life outcomes. This article reviews research that attempts to understand these decisionmaking patterns as a product of adaptive responses to the situation of low socioeconomic status. It proposes that low income contexts present socioecological cues concerning resource scarcity, environmental instability, and low subjective social status, which trigger a regulatory shift toward the present and the tuning of cognitive skills and focus to address immediate needs. These shifts in psychological processes lead to decisions that are rational in the immediate context of socioeconomic threat, but may hinder the achievement of long-term goals. Author Comments: Apologies for the long list of references-can try to cut down if necessary.

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“…By contrast the emerging, behavioural approach to poverty has started to look in-depth at the cognitive, motivational and even sociological limits on action. (Anand & Lea, 2011). Behavioral economists analyze the results of the psychological factors that influence the human behaviors like attitude, motivation and expectation through the phases of savings, consumption, production and pricing (Can, 2012: 96).…”

Section: The Influence Of Behavioral Economicsmentioning

confidence: 99%

The influence of promotional activities on the economic decision making

Öztopçu

Karaağaoğlu

2016

HumanSciences

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Behavioral economics is one of the sub-disciplines discussed through the process of economic thought. It studies the economic decisions of the individuals under the influence of social, emotional and cognitive factors. According to the rational behavior theory in economics, it is discussed that, the individuals may show irrational behaviors in spite of the expectation of rational behaviors. Economics is a human focused social science. The studies held, illustrate that the human behaviors have to be evaluated with the psychological factors.The purpose of this study is to investigate the influence of sales efforts of the drug firms on the economic decision making. The data gathered by the questionnaire show that the marketing strategies influence the decision making behavior of individuals.

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The psychology and behavioural economics of poverty

Cited by 49 publications

References 49 publications

Subjective well-being and relative poverty in rural Bangladesh

Subjective well-being and relative poverty in rural Bangladesh

The effects of low socioeconomic status on decision-making processes

The influence of promotional activities on the economic decision making

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