Does inflation affect well-being

Dados Bibliográficos

ID21542373
AutoresDavid Leblang (0000-0003-1315-3092, University of Virginia), Michael D Smith (0000-0001-9709-4485, National Oceanic and Atmospheric Administration), Woubet Kassa (0000-0002-2867-3106), Dennis Wesselbaum (0000-0003-2701-6689, University of Otago, autor correspondente)
Ano2025
Volume69
Fascículo3
Páginas1527-1549
Data de publicação2025-09-01
Open AccessSim
TipoARTICLE
PeriódicoEmpirical Economics (JOURNAL)
Identificadores do periódicoISSN: 0377-7332 • E-ISSN: 1435-8921
EditoraSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s00181-025-02761-w
OpenAlexW4410895870
IdiomaEN
Referências citadas41

After years of low and stable inflation, high inflation rates have returned in many countries around the world. This paper highlights the importance of outliers for the study of whether inflation is associated with individual-level well-being using cross-country data. We combine Gallup World Poll individual-level data from 150 countries between 2007 and 2019 with inflation data obtained from the International Monetary Fund ( N = 1,946,459). We conduct a conceptual replication of the paper by El-Jahel et al. (J Money Credit Bank 55:2001, 2022). We replicate the main finding that inflation is significantly associated with well-being in the full sample ( p N = 5014) changes the outcome and results in a nonsignificant correlation between inflation and well-being ( p = 0.112). These observations come from three countries (South Sudan, Venezuela, and Zimbabwe). We argue that anomalous events (civil war and a failing state) drive the low-well-being and high-inflation combination experienced in these countries and that these observations, hence, are outliers. Our findings are robust to various approaches for identifying outliers, various well-being measures, and econometric details

Econometrics · Economics · Keynesian economics · Monetary economics · Physics · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Psychological Well-being and Life Satisfaction · Psychology