Subjective well-being approach for testing money illusion-evidence using data from Social Weather Stations
This paper tests money illusion using measures of subjective well-being, nominal income, and price. It tests the hypothesis that there is no money illusion in the sense that proportional changes in both nominal income and price do not bring about a change in subjective well-being. The study uses foo...
Saved in:
| Main Author: | |
|---|---|
| Format: | text |
| Published: |
Archīum Ateneo
2017
|
| Subjects: | |
| Online Access: | https://archium.ateneo.edu/economics-faculty-pubs/13 https://ideas.repec.org/a/phs/prejrn/v54y2017i1p47-62.html |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Ateneo De Manila University |
| Summary: | This paper tests money illusion using measures of subjective well-being, nominal income, and price. It tests the hypothesis that there is no money illusion in the sense that proportional changes in both nominal income and price do not bring about a change in subjective well-being. The study uses food poverty data from Social Weather Stations as a proxy measure for nominal income and food Consumer Price Index inflation from the Philippine Statistics Authority as a proxy measure for price. The findings suggest no money illusion in general. More specifically, the findings provide conclusive evidence of no money illusion for the food-poor but not for the food-nonpoor. |
|---|