Income and Happiness : New Results from Generalized Threshold and Sequential Models

@inproceedings{Boes2004IncomeAH,
  title={Income and Happiness : New Results from Generalized Threshold and Sequential Models},
  author={Stefan Staub Boes and Rainer Winkelmann},
  year={2004}
}
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 depends on a person’s happiness. In this paper we pinpoint the shortcomings of standard models… CONTINUE READING