Are optimistic expectations keeping the Chinese happy?

Frijters, Paul, Liu, Amy Y. C. and Meng, Xin (2012) Are optimistic expectations keeping the Chinese happy?. Journal of Economic Behavior & Organization, 81 1: 159-171. doi:10.1016/j.jebo.2011.09.007


Author Frijters, Paul
Liu, Amy Y. C.
Meng, Xin
Title Are optimistic expectations keeping the Chinese happy?
Journal name Journal of Economic Behavior & Organization   Check publisher's open access policy
ISSN 0167-2681
Publication date 2012-01
Sub-type Article (original research)
DOI 10.1016/j.jebo.2011.09.007
Volume 81
Issue 1
Start page 159
End page 171
Total pages 13
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Collection year 2013
Language eng
Abstract In this paper we study the effect of optimistic income expectations on life satisfaction amongst the Chinese population. Using a large scale household survey conducted in 2002 we find that the level of optimism about the future is particularly strong in the countryside and amongst rural-to-urban migrants. The importance of these expectations for life satisfaction is particularly pronounced in the urban areas, though also highly significant for the rural area. If expectations were to reverse from positive to negative, we calculate that this would have doubled the proportion of unhappy people and reduced proportion of very happy people by 48 per cent. We perform several robustness checks to see if the results are driven by variations in precautionary savings or reverse causality.
Keyword China
Consumption and savings
Expectations
Happiness
Political economy
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online: 13 October 2011.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
School of Economics Publications
 
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Created: Fri, 18 Jan 2013, 12:44:32 EST by Alys Hohnen on behalf of School of Economics