Reversing the question: Does happiness affect consumption and savings behavior?
Cahit Guven ()
Journal of Economic Psychology, 2012, vol. 33, issue 4, 701-717
This paper attempts to answer an interesting but empirically challenging question: Do changes in well-being (life satisfaction or happiness) lead to changes in consumption and savings behavior? The paper uses regional sunshine as an instrument for personal happiness using the Dutch Household Survey from the Netherlands. Sunshine improves happiness significantly. Instrumenting happiness with sunshine, happier people are found to save more, spend less, and have a lower marginal propensity to consume. Happier people take more time for making decisions and have more control over expenditures; they expect a longer life and (accordingly) seem more concerned about the future than the present; they also expect less inflation in the future.
Keywords: 3920; Happiness; Savings; Consumption; Weather; Economic behavior (search for similar items in EconPapers)
JEL-codes: D03 D12 Q54 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (60) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Reversing the Question: Does Happiness Affect Consumption and Savings Behavior? (2009)
Working Paper: Reversing the question. Does happiness affect consumption and savings behavior? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:33:y:2012:i:4:p:701-717
Access Statistics for this article
Journal of Economic Psychology is currently edited by G. Antonides and D. Read
More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Catherine Liu ().