The aspirations gap is the distance between an individual’s current and aspired standard of livelihood. A growing theoretical literature predicts that aspirations both “too close” and “too far” away from current standards lead to less investment in the future. These theories imply an inverted U-shaped relationship between the aspirations gap and investments. I test this hypothesis and extend existing empirical findings to rural Myanmar by examining the relationship between the income aspirations gap and real estate investment choices. I find that income aspirations that are ahead, but not too far ahead, of current income levels provide the best incentive for investment. Analysis of heterogeneity highlights that this relationship is strongest for those with relatively low income and those who hold fatalistic beliefs. These findings suggest the presence of psychological constraints to poverty alleviation and development in rural Myanmar.

愿望差距是个人目前的生活水平与理想的生活水平之间的差距。越来越多的理论文献预测，与当前标准“太接近”和“太远”的愿望都会导致对未来的投资减少。这些理论暗示了愿望差距和投资之间的倒 U 形关系。我通过检查收入愿望差距与房地产投资选择之间的关系来检验这一假设并将现有的实证结果扩展到缅甸农村。我发现，高于当前收入水平但不会超前太多的收入愿望为投资提供了最佳激励。异质性分析强调，对于收入相对较低的人和持有宿命论的人来说，这种关系最强。