We consider the neglected issue of the dynamics of perceptions, as expressed in responses to survey questions on subjective well-being. We develop a simulated ML method for estimation for dynamic linear models, where the dependent variable is partially observed through ordinal scales. This latent autoregression (LAR) model is often more appropriate than the usual state-dependence (SD) model for attitudinal and interval variables. The paper contains an application to a model of households' perceptions of their financial well-being, demonstrating the superior fit of the LAR model to both the usual static model and the SD model.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Institute for Social and Economic Research in its series ISER working papers with number
2006-27.
Length: 25 Date of creation: May 2006 Date of revision: Handle: RePEc:ese:iserwp:2006-27
Contact details of provider: Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK Phone: 44-1206-872957 Fax: 44-1206-873151 Web page: http://www.iser.essex.ac.uk/
Order Information: Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK Email: Web: http://www.iser.essex.ac.uk/pubs/
For technical questions regarding this item, or to correct its listing, contact: (Paul Groves).