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Subjective Well-being, Risk Perceptions and Time Discounting: Evidence from a large-scale cash transfer programme

Author

Listed:
  • Bruno Martorano
  • Sudhanshu Handa
  • Carolyn Halpern
  • Harsha Thirumurthy

Abstract

The risk and time preferences of individuals as well as their subjective expectations regarding the future are likely to play an important role in choice behaviour. Measurement of these individual characteristics in large-scale surveys has been a recent development and empirical evidence on their associations with behaviour remains limited. We summarize the results of measuring individuals’ attitudes towards inter-temporal choice, risk, and the future in a large-scale field survey in Kenya. We find very low rates of inconsistency in interpreting questions on time and risk preferences. Cash transfers alone do not appear to impact time discounting or risk aversion, but they do have an important impact on subjective well-being measures and on future perceptions of quality of life.

Suggested Citation

  • Bruno Martorano & Sudhanshu Handa & Carolyn Halpern & Harsha Thirumurthy, 2014. "Subjective Well-being, Risk Perceptions and Time Discounting: Evidence from a large-scale cash transfer programme," Papers inwopa717, Innocenti Working Papers.
    • Handle: RePEc:ucf:inwopa:inwopa717
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    Cited by:

    1. Huawei Han & Qin Gao, 2020. "Does Welfare Participation Improve Life Satisfaction? Evidence from Panel Data in Rural China," Journal of Happiness Studies, Springer, vol. 21(5), pages 1795-1822, June.
    2. Ramlatu Attah & Valentina Barca & Andrew Kardan & Ian MacAuslan & Fred Merttens & Luca Pellerano, 2016. "Can Social Protection Affect Psychosocial Wellbeing and Why Does This Matter? Lessons from Cash Transfers in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 52(8), pages 1115-1131, August.
    3. Contreras Suarez, Diana & Cameron, Lisa A., 2016. "Conditional Cash Transfers: Do They Change Time Preferences and Educational Aspirations?," IZA Discussion Papers 10309, Institute of Labor Economics (IZA).
    4. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    5. Qiu Cheng & Kinglun Ngok, 2023. "Does the Dibao Program Improve Citizens’ Life Satisfaction in China? Perceptions of Pathways of Poverty Attribution and Income Inequality," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(2), pages 975-995, April.
    6. Zhou, Yunbo & Huang, Xingzi & Shen, Yangyang & Tian, Liu, 2023. "Does targeted poverty alleviation policy lead to happy life? Evidence from rural China," China Economic Review, Elsevier, vol. 81(C).
    7. Kelly Kilburn & Sudhanshu Handa & Gustavo Angeles & Peter Mvula & Maxton Tsoka & UNICEF Office of Research - Innocenti, 2016. "Happiness and Alleviation of Income Poverty: Impacts of an unconditional cash transfer programme using a subjective well-being approach," Papers inwopa857, Innocenti Working Papers.
    8. Daniel Morales Martínez & Alexandre Gori Maia, 2018. "The Impacts of Cash Transfers on Subjective Wellbeing and Poverty: The Case of Colombia," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 616-633, December.

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    risk; surveys; transfer income;
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