UC Davis Agricultural and Resource Economics

ARE at AAEA: Mo Alloush: Income, Psychological Well-being, and the Dynamics of Poverty

July 31, 2018

Time: 10 a.m. Monday, Aug. 6
Location: Washington Room 3 / International Development - Lightning Session

Abstract

Estimating the causal links between income and mental health is difficult due to simultaneity. I overcome this endogeneity with a panel GMM approach to estimate a dynamic system of equations identifying both causal links. Using a nationally representative panel dataset from South Africa, I find evidence of nonlinear impacts in both directions. Investigation of heterogeneity identifies an especially vulnerable subgroup — the poor with low levels of psychological well-being whose feedback loop may be especially strong. A formal test for poverty traps shows that individuals with low levels of psychological well-being exhibit different income dynamics suggestive of a multi-equilibrium poverty trap.

*This is information about one of the 17 people from ARE with a presentation at the 2018 AAEA Annual Meeting Aug. 5–7 in Washington, D.C.

 

More News

Contact Us

2116 Social Sciences and Humanities
University of California, Davis
One Shields Avenue
Davis, CA 95616

Main Office: 530-752-1515

Student Advising Services: 530-754-9536