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Do private and public transfers received affect life satisfaction? Evidence from Romania

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  • Mitrut, Andreea
  • Wolff, François-Charles

Abstract

This paper uses Romanian survey data to investigate the determinants of individual life and financial satisfaction, with an emphasis on the role of public and private transfers received. A possible concern is that these transfers are unlikely to be exogenous to satisfaction. We use recursive simultaneous equations models to account both for this potential problem and for the fact that public transfers are themselves endogenous in the private transfer equation. We find that public transfers received have a positive influence on both life and financial satisfaction, while private transfers do not matter. People receive private transfers irrespective of their economic and demographic characteristics in Romania, which could be explained by some social norm motives.

Suggested Citation

  • Mitrut, Andreea & Wolff, François-Charles, 2011. "Do private and public transfers received affect life satisfaction? Evidence from Romania," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 969-979.
  • Handle: RePEc:eee:joepsy:v:32:y:2011:i:6:p:969-979
    DOI: 10.1016/j.joep.2011.03.007
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    Cited by:

    1. Guven, Cahit, 2012. "Reversing the question: Does happiness affect consumption and savings behavior?," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 701-717.
    2. Yulei Rao & Lixing Mei & Rui Zhu, 2016. "Happiness and Stock-Market Participation: Empirical Evidence from China," Journal of Happiness Studies, Springer, vol. 17(1), pages 271-293, February.
    3. Laetitia Duval & François-Charles Wolff, 2016. "“I even met happy gypsies”," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 727-764, October.
    4. Yulei Rao & Lixing Mei & Rui Zhu, 2016. "Happiness and Stock-Market Participation: Empirical Evidence from China," Journal of Happiness Studies, Springer, vol. 17(1), pages 271-293, February.
    5. Ekaterina Selezneva, 2010. "What makes Russian women (un)happy? A closer look at the family," Working Papers 287, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    6. repec:bla:tvecsg:v:108:y:2017:i:2:p:190-204 is not listed on IDEAS

    More about this item

    Keywords

    Happiness; Financial satisfaction; Private transfers; Public transfers; Romania;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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