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“Graham and Lora provide the definitive work on well-being in Latin America, and this book is a must-read for anyone who wants to understand the economics, politics, and psychology of the region.” — EDWARD DIENER, Joseph Smiley Distinguished Professor of Psychology, University of Illinois “As a practitioner of public policymaking and politics for many years, I found this book extremely useful for better understanding the public’s often-unexpected reactions to specific policies and the subjective factors that determine those reactions. Paradox and Perception is an outstanding contribution in the field of behavioral economics. A must-read for policymakers in developing economies.” — ALEJANDRO FOXLEY, President, Cieplan, Chile; formerly Foreign Minister, Senator, and Minister of Finance of Chile “What determines life satisfaction beyond income is a fascinating topic that economists are just beginning to tackle seriously. This volume by Graham and Lora contains an excellent set of essays on this issue with specific reference to Latin America. Even those not specifically interested in Latin America but in the general issue of money and happiness will learn from it.” — ALBERTO ALESINA, Nathaniel Ropes Professor of Political Economics, Harvard University Contributors: Jere R. Behrman (University of Pennsylvania), Mauricio Cárdenas (Brookings), Juan Camilo Chaparro (University of Toronto), Raphael Botura Corbi (Universidade de São Paulo, Brazil), Andrea Zaitune Curi (Universidade de São Paulo, Brazil), Walter Sosa Escudero (Universidad de San Andrés, Argentina), Leonardo Gasparini (CEDLAS, Universidad Nacional de la Plata, Argentina), Mariana Marchionni (Universidad Nacional de la Plata, Argentina), Vincenzo di Maro (Inter-American Development Bank, IDB), Carolina Mejía (Fedesarrollo, Colombia), Naercio Aquino Menezes-Filho (Insper Institute and Universidade de São Paulo, Brazil), Sergio Olivieri (CEDLAS), María Victoria Rodríguez-Pombo (Harvard Kennedy School). Carol Graham is senior fellow and Charles Robinson Chair at the Brookings Institution and College Park Professor at the University of Maryland. She has also served as a special adviser to the executive vice president of the Inter-American Development Bank (IDB). Eduardo Lora is general manager of the Research Department and chief economist at the IDB. He has been the executive director of Fedesarrollo, in Bogotá, Colombia. Brookings Institution Press Washington, D.C. www.brookings.edu Inter-American Development Bank Washington, D.C. www.iadb.org Cover design and illustration by Rich Pottern Design ...

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