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HORIZONTAL AND VERTICAL CONTEXTS ON EUROPEANS’ WELL-BEING

Fernando Bruna, Isabel Neira (isabel.neira@usc.es) and Marta Portela

Applied Econometrics and International Development, 2019, vol. 19, issue 2, 37-56

Abstract: This paper analyzes the economic and social contextual determinants of individual life satisfaction and happiness across Europe. We provide new theoretical and empirical arguments about the consequences of horizontal and vertical spatial dependences in multilevel models. Using individual European data we estimate a random effects spatial lag of X (SLX) hierarchical model, which allows for local spillovers of contextual factors to neighboring regions defined at several aggregation levels. Our results not only confirm the role of regional contextual factors but the significance of the spatial lags of those contextual factors, probably indicating the presence of clustered latent variables.

Keywords: Life satisfaction; happiness; social capital; multilevel models; spatial lag of X model; spillovers. (search for similar items in EconPapers)
JEL-codes: C50 I31 Z13 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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