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How Important is Methodology for the Estimates of the Determinants of Happiness?

Ferrer-i-Carbonell, Ada; Frijters, Paul


Psychologists and sociologists usually-interpret happiness scores as cardinal and comparable across respondents, and thus run OLS regressions on happiness and changes in happiness. Economists usually assume only ordinality and have mainly used ordered latent response models, thereby not taking satisfactory account of fixed individual traits. We address this problem by developing a conditional estimator for the fixed-effect ordered logit model. We find that assuming ordinality or cardinality of...[Show more]

CollectionsANU Research Publications
Date published: 2004
Type: Journal article
Source: The Economic Journal
DOI: 10.1111/j.1468-0297.2004.00235.x


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