We develop a theoretical framework that considers four distinct explanatory channels through which neighbors' income … could affect utility: public goods, cost of living, expectations of future income, and the direct effect (relative income … subjective well-being (SWB) data from the U.S. Gallup-Healthways Well-Being Index and geographically-based median-income data …

The permanent income hypothesis states that agents perfectly smooth consumption given a large, anticipated shock to … income. Testing these implications is difficult given the endogenous nature of income and payment timing. We leverage …

transfer payday, an anticipated and transitory income shock. We find that food consumption and food security do not change … higher than median transfer dependence. Conversely, health and employment shocks (unexpected and less transitory income …

under secrecy. This occurs despite subjects revealing more information under transparency than theory predicts. …

probability of suffering from a chronic disease in the future. Individuals differ in income and in their degree of misperceptions …