Income and Happiness: New Results from Generalized Threshold and Sequential Models
Stefan Boes () and
Rainer Winkelmann ()
No 407, SOI - Working Papers from Socioeconomic Institute - University of Zurich
Empirical studies on the relationship between income and happiness commonly use standard ordered response models, the most well-known representatives being the ordered logit and the ordered probit. However, these models restrict the marginal probability effects by design, and therefore limit the analysis of distributional aspects of a change in income, that is, the study of whether the income effect depend on a personï¿½s happiness. In this paper we pinpoint the shortcomings of standard models and propose two alternatives, namely generalized threshold and sequential models. With data of two waves of the German Socio-Economic Panel, 1984 and 1997, we show that the more general models yield different marginal probability effects than standard models.
Keywords: Ordered response models; marginal effects; subjective well-being (search for similar items in EconPapers)
JEL-codes: C25 I31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (20) Track citations by RSS feed
Downloads: (external link)
http://www.econ.uzh.ch/static/wp_soi/wp0407.pdf First version, 2004 (application/pdf)
Working Paper: Income and Happiness: New Results from Generalized Threshold and Sequential Models (2004)
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:soz:wpaper:0407
Access Statistics for this paper
More papers in SOI - Working Papers from Socioeconomic Institute - University of Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Marita Kieser ().