The Money–Happiness Relationship in Transition Countries: Evidence from Albania
AbstractWith an empirical analysis on a panel of individuals living in a transition country (Albania) we document that the impact of money on happiness does not depend only on the pecuniary outcome but also from aspirations and conditions leading to its determination. Additional factors which matter are the self perceived economic status and the share earned from remittances (and, more weakly, from social assistance). By looking at different sides of the phenomenon we find that these factors affect levels, changes in income and the probability of âbeing frustrated achieversâ. Finally, differently from what happens in developed countries, higher income levels are negatively and not positively correlated with the probability of frustrated achievement supporting the hypothesis that individuals in transition countries are not in the upper side of a concave happiness-income relationship.
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Bibliographic InfoArticle provided by Springer in its journal Transition Studies Review.
Volume (Year): 17 (2010)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=112913
Other versions of this item:
- Leonardo Becchetti & Sara Savastano, 2009. "The money-happiness relationship in transition countries: evidence from Albania," Econometica Working Papers wp11, Econometica.
- I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
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