Lecture Title: "Income Accounting" and Subjective Well-being: A Quasi-experiment of Targeted Poverty Alleviation Policy in China
Time: 11:00-12:30 Thursday, 24 March 2022
Venue: Conference Room 119, Wenqin Building
Moderator: Dr. Zou Wei
Presenter: Prof. Lu Yuanping
Professor Lu is a professor of the School of Public Finance and Taxation, the Executive Deputy Director of IIDPF and a Wenlan Young Scholar. His research interests include income distribution, social security and happiness economics.
Abstract:
Using the data set of China Household Finance Survey (CHFS), we find that Targeted Poverty Alleviation Policy (TPAP) has significantly improved the Subjective Well-being (SWB) of poor. We also find that income comparisons have a differential effect on individual SWB. Absolute income can affect individual SWB in the short-term and relative income is the main determinant of SWB in the long-term. Further analysis shows that long term subsidies will have "hedonic adaptability" and welfare-dependent effect, reducing SWB. Our empirical results also prove the important role of the impact of relative income change on resident's welfare, and provide theoretical and empirical evidence for the welfare dependence effect of government cash transfer payment.