Journal article

Can Positive Psychology Improve Psychological Well-being and Economic Decision-Making? Experimental Evidence from Kenya

Victoria Baranov, Johannes Haushofer, Chaning Jang

Economic Development and Cultural Change | University of Chicago Press | Published : 2020

Abstract

We conduct a randomized experiment to evaluate the effect of a light-touch low-cost psychological intervention on psychological well-being and economic decision-making in a developingcountry setting. Residents of an informal settlement in Kenya were randomly assigned to participate in best-practice exercises designed to promote gratitude, self-affirmation, and aspirations. We show that although we were successful in manipulating the psychological construct (reported gratitude increased 0.3SD), there is no evidence that the intervention affected overall psychological well-being, beliefs, or aspirations. We also see no effects on real-incentive tasks measuring cognitive control or temporal dis..

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University of Melbourne Researchers

Grants

Awarded by National Institutes of Health


Funding Acknowledgements

The authors thank James Reisinger, Matthew Cohen, and Lucy Rimmington for excellent research assistance and James Vancel and the staff of the Busara Center for Behavioral Economics for implementation. The authors are grateful to Leslie Martin, Sendhil Mullainathan, Tom Wilkening, and Jenny Williams for their comments. This research was supported by the Faculty of Business and Economics at the University of Melbourne and NIH R01AG039297 (Common Fund). Contact the corresponding author, Victoria Baranov, at victoria.baranov@unimelb.edu.au.