What (If Anything) Do Satisfaction Scores Tell Us about the Intertemporal Change in Living Conditions
This paper looks at the information content of satisfaction scores. It is argued that the information content depends on the extent to which people adapt to living conditions in general. Using data from the German Socio-Economic Panel Study (SOEP), the estimation of a dynamic panel data model provides evidence that adaptation takes place within a relatively short window of time: changes in living conditions are, for the most part, absorbed by an adjustment of the adaptation level within one year. This leads to the conclusion that the information content of satisfaction scores accentuates recent changes in living conditions. Remote changes are notcaptured by the according survey questions, even if these changes have long-term impact on living conditions. The usefulness of satisfaction scores as an indicator of people's living conditions is discussed.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.diw.de/en/soep
More information through EDIRC
References listed on IDEAS
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.:
- Oswald, Andrew, 1997.
"Happiness and Economic Performance,"
The Warwick Economics Research Paper Series (TWERPS)
478, University of Warwick, Department of Economics.
- Bruno S. Frey & Alois Stutzer, 2002.
"What Can Economists Learn from Happiness Research?,"
Journal of Economic Literature,
American Economic Association, vol. 40(2), pages 402-435, June.
- Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
- Bruno S. Frey & Alois Stutzer, . "What can Economists Learn from Happiness Research?," IEW - Working Papers 080, Institute for Empirical Research in Economics - University of Zurich.
- Thomas Siedler & JÜrgen Schupp & C. Katharina Spiess & Gert G. Wagner, 2009. "The German Socio-Economic Panel (SOEP) as Reference Data Set," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 367-374.
- Rafael Di Tella & John Haisken-De New & Robert MacCulloch, 2007.
"Happiness Adaptation to Income and to Status in an Individual Panel,"
NBER Working Papers
13159, National Bureau of Economic Research, Inc.
- Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002.
"How important is Methodology for the Estimates of the Determinants of Happiness?,"
Tinbergen Institute Discussion Papers
02-024/3, Tinbergen Institute.
- 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.
- Paul Dolan & Tessa Peasgood, 2008. "Measuring Well-Being for Public Policy: Preferences or Experiences?," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages S5-S31, 06.
- Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008.
"Relative income, happiness, and utility: An explanation for the Easterlin paradox and other puzzles,"
- Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
- Clark, Andrew E. & Frijters, Paul & Shields, Michael A., 2007. "Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," IZA Discussion Papers 2840, Institute for the Study of Labor (IZA).
- Alex Michalos, 1985. "Multiple discrepancies theory (MDT)," Social Indicators Research, Springer, vol. 16(4), pages 347-413, May.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Bruno S. Frey & Alois Stutzer, 2000.
"Happiness, Economy and Institutions,"
CESifo Working Paper Series
246, CESifo Group Munich.
- Denis Huschka & Gert G. Wagner, 2010.
"Sind Indikatoren zur Lebensqualität und zur Lebenszufriedenheit als politische Zielgrößen sinnvoll?,"
SOEPpapers on Multidisciplinary Panel Data Research
275, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Denis Huschka & Gert G. Wagner, 2010. "Sind Indikatoren zur Lebensqualität und zur Lebenszufriedenheit als politische Zielgrößen sinnvoll?," Research Notes of the German Council for Social and Economic Data 43, German Council for Social and Economic Data (RatSWD).
- Stephen Pudney, 2008.
"The dynamics of perception: modelling subjective wellbeing in a short panel,"
Journal of the Royal Statistical Society Series A,
Royal Statistical Society, vol. 171(1), pages 21-40.
- Pudney, Stephen, 2006. "The dynamics of perception: modelling subjective well-being in a short panel," ISER Working Paper Series 2006-27, Institute for Social and Economic Research.
- Christoph Wunder, 2009. "Adaptation to Income over Time: A Weak Point of Subjective Well-Being," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 269-281.
- Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
- J.J. Ehrhardt & W.E. Saris & R. Veenhoven, 2000. "Stability of Life-satisfaction over Time," Journal of Happiness Studies, Springer, vol. 1(2), pages 177-205, June.
- Ed Diener & Robert Biswas-Diener, 2002. "Will Money Increase Subjective Well-Being?," Social Indicators Research, Springer, vol. 57(2), pages 119-169, February.
When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp306. See general 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: (Bibliothek)
If references are entirely missing, you can add them using this form.