Money Illusion Under Test
AbstractMuch progress has been made in recent years in developing and applying a direct measure of utility using survey questions on satisfaction with income and with life in general. In this paper we apply this new type of measurement to the study of money illusion. Using data from the German Socio-Economic Panel for the years 1993 to 2003, we cannot reject the hypothesis of no money illusion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Zurich, Socioeconomic Institute in its series Working Papers with number 0514.
Length: 7 pages
Date of creation: Nov 2005
Date of revision:
Publication status: Published in Economics Letters 94, 2007, pages 332–337
North-South; cost-of-living; subjective well-being; fixed effects;
Other versions of this item:
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
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.:
- Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001.
"Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness,"
American Economic Review,
American Economic Association, vol. 91(1), pages 335-341, March.
- DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 2001. "Preferences over inflation and unemployment: Evidence from surveys of happiness," ZEI Working Papers B 03-2001, ZEI - Center for European Integration Studies, University of Bonn.
- Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2005.
"A Structural Model of Demand for Apprentices,"
CESifo Working Paper Series
1417, CESifo Group Munich.
- Bühler, Stefan & Schmutzler, Armin, 2003. "Who Integrates?," CEPR Discussion Papers 4066, C.E.P.R. Discussion Papers.
- Michael W.M. Roos, 2003.
"Regional price levels in Germany,"
ERSA conference papers
ersa03p511, European Regional Science Association.
- Stefan Boes, 2004. "Empirical Likelihood in Count Data Models: The Case of Endogenous Regressors," Working Papers 0404, University of Zurich, Socioeconomic Institute.
- Ernst Fehr & Jean-Robert Tyran, .
"Does Money Illusion Matter?,"
IEW - Working Papers
012, Institute for Empirical Research in Economics - University of Zurich.
- Tobin, James, 1972. "Inflation and Unemployment," American Economic Review, American Economic Association, vol. 62(1), pages 1-18, March.
- Mahler, Philippe & Winkelmann, Rainer, 2004.
"Single Motherhood and (Un)Equal Educational Opportunities: Evidence for Germany,"
IZA Discussion Papers
1391, Institute for the Study of Labor (IZA).
- Philippe Mahler & Rainer Winkelmann, 2005. "Single Motherhood and (Un)Equal EducationalOpportunities: Evidence for Germany," Working Papers 0512, University of Zurich, Socioeconomic Institute.
- Lalive, Rafael & Schmutzler, Armin, 2005. "Competition for Railway Markets: The Case of Baden-Württemberg," CEPR Discussion Papers 5396, C.E.P.R. Discussion Papers.
- Thomas Borek & Stefan Buehler & Armin Schmutzler, 2004. "Mergers under Asymmetric Information – Is there a Lemons Problem?," Working Papers 0408, University of Zurich, Socioeconomic Institute.
- Dennis Gaertner & Daniel Halbheer, 2004.
"Are There Waves in Merger Activity After All?,"
0414, University of Zurich, Socioeconomic Institute, revised Feb 2006.
- Yves Schneider & Peter Zweifel, 2005. "Spatial Effects in Willingness-to-Pay: The Case of Two Nuclear Risks," Working Papers 0502, University of Zurich, Socioeconomic Institute, revised Sep 2007.
- Daniel Halbheer & Sarah Niggli & Armin Schmutzler, 2006.
"What Does it Take to Sell Environmental Policy? An Empirical Analysis of Referendum Data,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 33(4), pages 441-462, 04.
- Daniel Halbheer & Sarah Niggli & Armin Schmutzler, 2003. "What does it take to sell Environmental Policy? An empirical Analysis of Referendum Data," Working Papers 0304, University of Zurich, Socioeconomic Institute, revised Apr 2005.
- Shafir, Eldar & Diamond, Peter & Tversky, Amos, 1997. "Money Illusion," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 341-74, May.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marita Kieser).
If references are entirely missing, you can add them using this form.