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The Dynamics of Individual Happiness

Author

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  • Lionel WILNER

    (Insee-Crest.)

Abstract

This paper unveils the role played by state dependence in self-assessed happiness. It estimates a dynamic nonlinear model of subjective well-being on longitudinal data, primarily from France, as well as from Australia, Germany, and the UK. Life satisfaction is found to be highly persistent over time, which static models ignore. The impact of state dependence is large in comparison with usual determinants of happiness in static models. More-over, this persistence is heterogeneous across individuals and concerns those already happy with their lives.

Suggested Citation

  • Lionel WILNER, 2019. "The Dynamics of Individual Happiness," Working Papers 2019-18, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2019-18
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    More about this item

    Keywords

    Happiness; subjective well-being; life satisfaction; dynamic model; state dependence; correlated random effects; initial condition.;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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