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Abstract

We investigate the impact of short-term weather and long-term climate on self-reported life satisfaction using panel data. We find robust evidence that day-to-day weather variation impacts life satisfaction by a similar magnitude to acquiring a mild disability. Utilizing two sources of variation in the cognitive complexity of satisfaction questions, we present evidence that weather bias arises because of the cognitive challenge of reporting life satisfaction. Consistent with past studies, we detect a relationship between long-term climate and life satisfaction without individual fixed effects. This relationship is not robust to individual fixed effects, suggesting climate does not directly influence life satisfaction.�

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File URL: http://www.economics.ox.ac.uk/materials/papers/12439/paper627.pdf
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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 627.

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Date of creation: 01 Nov 2012
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Handle: RePEc:oxf:wpaper:627

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Postal: Manor Rd. Building, Oxford, OX1 3UQ
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Web page: http://www.economics.ox.ac.uk/
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Related research

Keywords: Life satisfaction; Subjective well-being; Climate change; Weather;

Find related papers by JEL classification:

• Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
• C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
• C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
• C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

This paper has been announced in the following NEP Reports:

• NEP-ALL-2012-11-11 (All new papers)
• NEP-ENV-2012-11-11 (Environmental Economics)
• NEP-HAP-2012-11-11 (Economics of Happiness)
• NEP-LTV-2012-11-11 (Unemployment, Inequality & Poverty)
• NEP-NEU-2012-11-11 (Neuroeconomics)
• NEP-RES-2012-11-11 (Resource Economics)

References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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1. Arik Levinson, 2009. "Valuing Public Goods Using Happiness Data: The Case of Air Quality," NBER Working Papers 15156, National Bureau of Economic Research, Inc.
   
   • Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
   • Arik Levinson, 2009. "Valuing Public Goods Using Happiness Data: The Case of Air Quality," Working Papers gueconwpa~09-09-03, Georgetown University, Department of Economics.
2. Barrington-Leigh, Christopher P, 2008. "Weather as a transient influence on survey-reported satisfaction with life," MPRA Paper 25736, University Library of Munich, Germany.
3. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, 06.
4. Christopher L Ambrey & Christopher M Fleming, 2011. "Valuing scenic amenity using life satisfaction data," Discussion Papers in Economics economics:201103, Griffith University, Department of Accounting, Finance and Economics.
5. Maddison, David & Rehdanz, Katrin, 2011. "The impact of climate on life satisfaction," Ecological Economics, Elsevier, vol. 70(12), pages 2437-2445.
   
   • David Maddison & Katrin Rehdanz, 2010. "The Impact of Climate on Life Satisfaction," Kiel Working Papers 1658, Kiel Institute for the World Economy.
6. Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
7. Ambrey, Christopher L. & Fleming, Christopher M., 2011. "Valuing scenic amenity using life satisfaction data," Ecological Economics, Elsevier, vol. 72(C), pages 106-115.
8. Katrin Rehdanz & David J. Maddison, 2006. "Local Environmental Quality and Life-Satisfaction in Germany," Working Papers FNU-119, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2006.
   
   • Rehdanz, Katrin & Maddison, David, 2008. "Local environmental quality and life-satisfaction in Germany," Ecological Economics, Elsevier, vol. 64(4), pages 787-797, February.
9. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
10. Brereton, Finbarr & Clinch, J. Peter & Ferreira, Susana, 2008. "Happiness, geography and the environment," Ecological Economics, Elsevier, vol. 65(2), pages 386-396, April.
11. Oswald, Andrew J. & Wu, Stephen, 2010. "Objective Confirmation of Subjective Measures of Human Well-being: Evidence from the USA," IZA Discussion Papers 4695, Institute for the Study of Labor (IZA).
12. Uri Simonsohn, 2010. "Weather To Go To College," Economic Journal, Royal Economic Society, vol. 120(543), pages 270-280, 03.
13. Nick Carroll & Paul Frijters & Michael Shields, 2009. "Quantifying the costs of drought: new evidence from life satisfaction data," Journal of Population Economics, Springer, vol. 22(2), pages 445-461, April.
14. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, vol. 58(4), pages 801-813, July.

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