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\renewcommand{\incappendixname}{Appendix\xspace}
}

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\forThesis{\chapter[The geographic scale of urban Veblen effects]{Empathy and
emulation: life satisfaction and the urban geography of comparison groups}}
\forThesis{
}
\label{sec:incomeCMA}
\forPaper{
\title{Empathy and emulation: Life satisfaction and the urban geography of comparison groups}
\date{First draft: 8 June 2007; this draft: October 2008}


\author{C. P. Barrington-Leigh and John F. Helliwell%
\thanks{Department of Economics, University of British Columbia. An up
  to date version of this paper is online at (\textsc{grad.econ.ubc.ca/cpbl}).
We are grateful for helpful comments from Nicole
Fortin, Thomas Lemieux, Erick Matsen, Peter Zorn, and other seminar
participants, and wish to acknowledge our support from the Social Sciences and Humanities
Research Council of Canada, the Canadian Institute for
Advanced Research (CIFAR) and from Statistics Canada through UBC's
Interuniversity Research Data Centre. This research forms part of
the CIFAR Program on Social Interactions, Identity and Well-Being.
}}

\maketitle

\begin{abstract}
Departures from self-centred, consumption-oriented decision making are increasingly common in economic theory and are well motivated by a wide range of behavioural data from experiments, surveys, and econometric inference. A number of studies have shown large negative externalities in individual subjective well-being due to neighbours' incomes. These reflect the role of nearby households as comparison groups acting in individuals' reference-dependent preferences over income or consumption. At the same time, there are many reasons to expect positive spillovers from having prosperous neighbours. We combine high-resolution geographic data from three Canada-wide social surveys and the 2001 census to disentangle the spatial pattern of reference groups in urban areas and to identify channels of positive and negative spillovers on life satisfaction. We find evidence of significant effects at different scales and are able to reject a number of alternative explanations for the findings.
\end{abstract}


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\setcounter{page}{1}
\section{Introduction}

In many contexts of predictive analysis and policy framing, economists
assume without evidence that desirable benefits accrue to humans based
primarily on their absolute levels of
consumption.\forThesis{\footnote{A version of this chapter will be
    submitted for publication as Barrington-Leigh, C.P. and Helliwell,
  J.F., `Empathy and emulation: life satisfaction and the urban
  geography of comparison groups.' The electronic version of this
  document offers
  fully hyperlinked cross-references throughout. We are grateful for support from SSHRC, the Canadian Institute for
Advanced Research (CIFAR) and from Statistics Canada through UBC's
Interuniversity Research Data Centre. This research forms part of
the CIFAR Program on Social Interactions, Identity and Well-Being.}}

More broadly, it is conventional to focus without empirical justific....

\section{Results}

\useColoursForSignificance

\cpblTableCASimple{auto}{Robustness checks}{Robustness checks for
  estimates of SWL}{\explainCRC \cpblColourLegend}{tab:robustChecks}{}{CRdrobustsg9-CRcoefs-hidecontrols}

\useBoldForSignificance

\cpblTableCASimple{auto}{Robustness checks}{Robustness checks for
  estimates of SWL}{\explainCRC \cpblColourLegend}{tab:robustChecks}{}{CRdrobustsg9-CRcoefs-hidecontrols}


\forPaper{
\bibliographystyle{cje}
\clearpage\addcontentsline{toc}{section}{\bibname}\bibliography{veblen,evolution,institutions,swb,general,urban,weather}

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