Isolation and Subjective Welfare : Evidence from South Asia

Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are as...

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Main Authors:	Fafchamps, Marcel, Shilpi, Forhad
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE AGED AGRICULTURAL OUTPUT AGRICULTURE AIR ARBITRAGE ASSETS AVERAGE INCOME AVERAGE TRAVEL TIME BUFFER STOCK CD CONSUMER GOODS CONSUMERS CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION GOODS CONSUMPTION GROWTH CONSUMPTION LEVELS CURRENT CONSUMPTION DECREASING FUNCTION DEMAND CURVE DEMAND FUNCTIONS DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC THEORY ECONOMIES OF SCALE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EXTERNALITIES GINI COEFFICIENT HEALTH CARE HEALTH SERVICES HOME CARE HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLDS HUMAN CAPITAL INCOME INCOMES INDUSTRIALIZATION INEQUALITY IRON ISOLATION LABOR MARKET LABOR MARKETS LEVEL OF CONSUMPTION LIQUIDITY LIQUIDITY CONSTRAINTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MEASUREMENT ERROR MEASURING POVERTY MIGRANTS MIGRATION MIXED USE MOBILITY NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE RELATIONSHIP NEGATIVE SIGN NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA CONSUMPTION PERMANENT INCOME POLICE POLICY RESEARCH POLITICAL ECONOMY POOR AREAS POOR PEOPLE POPULATION DENSITY POSITIVE COEFFICIENT POVERTY LINE PREFERENCE FUNCTIONS PRICE CONTROLS PRICE DIFFERENTIALS PSYCHOLOGISTS PSYCHOLOGY PUBLIC ECONOMICS PUBLIC GOODS QUALITY OF LIFE REDUCTION IN TRAVEL REGIONAL DIFFERENCES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE EARNINGS ROAD ROADS RURAL ROADS SIGNIFICANT EFFECT SIGNIFICANT NEGATIVE SIGNIFICANT RELATIONSHIP SOCIAL RESEARCH SUB-SAHARAN AFRICA TOTAL CONSUMPTION TOTAL INCOME TRANSPORT TRANSPORT COSTS TRAVEL DISTANCE TRAVEL TIME TRAVEL TIMES TRUE UNEMPLOYMENT UTILITY FUNCTION UTILITY MAXIMIZATION VEHICLES WAGES WEALTH WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2008/02/9036699/isolation-subjective-welfare-evidence-south-asia http://hdl.handle.net/10986/6573

id	okr-10986-6573
recordtype	oai_dc
spelling	okr-10986-65732021-04-23T14:02:31Z Isolation and Subjective Welfare : Evidence from South Asia Fafchamps, Marcel Shilpi, Forhad ABSOLUTE VALUE AGED AGRICULTURAL OUTPUT AGRICULTURE AIR ARBITRAGE ASSETS AVERAGE INCOME AVERAGE TRAVEL TIME BUFFER STOCK CD CONSUMER GOODS CONSUMERS CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION GOODS CONSUMPTION GROWTH CONSUMPTION LEVELS CURRENT CONSUMPTION DECREASING FUNCTION DEMAND CURVE DEMAND FUNCTIONS DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC THEORY ECONOMIES OF SCALE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EXTERNALITIES GINI COEFFICIENT HEALTH CARE HEALTH SERVICES HOME CARE HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLDS HUMAN CAPITAL INCOME INCOMES INDUSTRIALIZATION INEQUALITY IRON ISOLATION LABOR MARKET LABOR MARKETS LEVEL OF CONSUMPTION LIQUIDITY LIQUIDITY CONSTRAINTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MEASUREMENT ERROR MEASURING POVERTY MIGRANTS MIGRATION MIXED USE MOBILITY NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE RELATIONSHIP NEGATIVE SIGN NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA CONSUMPTION PERMANENT INCOME POLICE POLICY RESEARCH POLITICAL ECONOMY POOR AREAS POOR PEOPLE POPULATION DENSITY POSITIVE COEFFICIENT POVERTY LINE PREFERENCE FUNCTIONS PRICE CONTROLS PRICE DIFFERENTIALS PSYCHOLOGISTS PSYCHOLOGY PUBLIC ECONOMICS PUBLIC GOODS QUALITY OF LIFE REDUCTION IN TRAVEL REGIONAL DIFFERENCES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE EARNINGS ROAD ROADS RURAL ROADS SIGNIFICANT EFFECT SIGNIFICANT NEGATIVE SIGNIFICANT RELATIONSHIP SOCIAL RESEARCH SUB-SAHARAN AFRICA TOTAL CONSUMPTION TOTAL INCOME TRANSPORT TRANSPORT COSTS TRAVEL DISTANCE TRAVEL TIME TRAVEL TIMES TRUE UNEMPLOYMENT UTILITY FUNCTION UTILITY MAXIMIZATION VEHICLES WAGES WEALTH WORKERS Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation, and hence will tend to bias downward the assessment of benefits to isolation-reducing investments such as roads and communication infrastructure. 2012-05-29T18:02:26Z 2012-05-29T18:02:26Z 2008-02 http://documents.worldbank.org/curated/en/2008/02/9036699/isolation-subjective-welfare-evidence-south-asia http://hdl.handle.net/10986/6573 English Policy Research Working Paper; No. 4535 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Nepal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ABSOLUTE VALUE AGED AGRICULTURAL OUTPUT AGRICULTURE AIR ARBITRAGE ASSETS AVERAGE INCOME AVERAGE TRAVEL TIME BUFFER STOCK CD CONSUMER GOODS CONSUMERS CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION GOODS CONSUMPTION GROWTH CONSUMPTION LEVELS CURRENT CONSUMPTION DECREASING FUNCTION DEMAND CURVE DEMAND FUNCTIONS DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC THEORY ECONOMIES OF SCALE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EXTERNALITIES GINI COEFFICIENT HEALTH CARE HEALTH SERVICES HOME CARE HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLDS HUMAN CAPITAL INCOME INCOMES INDUSTRIALIZATION INEQUALITY IRON ISOLATION LABOR MARKET LABOR MARKETS LEVEL OF CONSUMPTION LIQUIDITY LIQUIDITY CONSTRAINTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MEASUREMENT ERROR MEASURING POVERTY MIGRANTS MIGRATION MIXED USE MOBILITY NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE RELATIONSHIP NEGATIVE SIGN NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA CONSUMPTION PERMANENT INCOME POLICE POLICY RESEARCH POLITICAL ECONOMY POOR AREAS POOR PEOPLE POPULATION DENSITY POSITIVE COEFFICIENT POVERTY LINE PREFERENCE FUNCTIONS PRICE CONTROLS PRICE DIFFERENTIALS PSYCHOLOGISTS PSYCHOLOGY PUBLIC ECONOMICS PUBLIC GOODS QUALITY OF LIFE REDUCTION IN TRAVEL REGIONAL DIFFERENCES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE EARNINGS ROAD ROADS RURAL ROADS SIGNIFICANT EFFECT SIGNIFICANT NEGATIVE SIGNIFICANT RELATIONSHIP SOCIAL RESEARCH SUB-SAHARAN AFRICA TOTAL CONSUMPTION TOTAL INCOME TRANSPORT TRANSPORT COSTS TRAVEL DISTANCE TRAVEL TIME TRAVEL TIMES TRUE UNEMPLOYMENT UTILITY FUNCTION UTILITY MAXIMIZATION VEHICLES WAGES WEALTH WORKERS
spellingShingle	ABSOLUTE VALUE AGED AGRICULTURAL OUTPUT AGRICULTURE AIR ARBITRAGE ASSETS AVERAGE INCOME AVERAGE TRAVEL TIME BUFFER STOCK CD CONSUMER GOODS CONSUMERS CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION GOODS CONSUMPTION GROWTH CONSUMPTION LEVELS CURRENT CONSUMPTION DECREASING FUNCTION DEMAND CURVE DEMAND FUNCTIONS DEPENDENT VARIABLE DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC THEORY ECONOMIES OF SCALE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RELATIONSHIP EXTERNALITIES GINI COEFFICIENT HEALTH CARE HEALTH SERVICES HOME CARE HOUSEHOLD CHARACTERISTICS HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLDS HUMAN CAPITAL INCOME INCOMES INDUSTRIALIZATION INEQUALITY IRON ISOLATION LABOR MARKET LABOR MARKETS LEVEL OF CONSUMPTION LIQUIDITY LIQUIDITY CONSTRAINTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MEASUREMENT ERROR MEASURING POVERTY MIGRANTS MIGRATION MIXED USE MOBILITY NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE RELATIONSHIP NEGATIVE SIGN NORMAL DISTRIBUTION 0 HYPOTHESIS PER CAPITA CONSUMPTION PERMANENT INCOME POLICE POLICY RESEARCH POLITICAL ECONOMY POOR AREAS POOR PEOPLE POPULATION DENSITY POSITIVE COEFFICIENT POVERTY LINE PREFERENCE FUNCTIONS PRICE CONTROLS PRICE DIFFERENTIALS PSYCHOLOGISTS PSYCHOLOGY PUBLIC ECONOMICS PUBLIC GOODS QUALITY OF LIFE REDUCTION IN TRAVEL REGIONAL DIFFERENCES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE EARNINGS ROAD ROADS RURAL ROADS SIGNIFICANT EFFECT SIGNIFICANT NEGATIVE SIGNIFICANT RELATIONSHIP SOCIAL RESEARCH SUB-SAHARAN AFRICA TOTAL CONSUMPTION TOTAL INCOME TRANSPORT TRANSPORT COSTS TRAVEL DISTANCE TRAVEL TIME TRAVEL TIMES TRUE UNEMPLOYMENT UTILITY FUNCTION UTILITY MAXIMIZATION VEHICLES WAGES WEALTH WORKERS Fafchamps, Marcel Shilpi, Forhad Isolation and Subjective Welfare : Evidence from South Asia
geographic_facet	South Asia Nepal
relation	Policy Research Working Paper; No. 4535
description	Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation, and hence will tend to bias downward the assessment of benefits to isolation-reducing investments such as roads and communication infrastructure.
format	Publications & Research :: Policy Research Working Paper
author	Fafchamps, Marcel Shilpi, Forhad
author_facet	Fafchamps, Marcel Shilpi, Forhad
author_sort	Fafchamps, Marcel
title	Isolation and Subjective Welfare : Evidence from South Asia
title_short	Isolation and Subjective Welfare : Evidence from South Asia
title_full	Isolation and Subjective Welfare : Evidence from South Asia
title_fullStr	Isolation and Subjective Welfare : Evidence from South Asia
title_full_unstemmed	Isolation and Subjective Welfare : Evidence from South Asia
title_sort	isolation and subjective welfare : evidence from south asia
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/02/9036699/isolation-subjective-welfare-evidence-south-asia http://hdl.handle.net/10986/6573
_version_	1764400540925558784

Isolation and Subjective Welfare : Evidence from South Asia

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