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Building Financial Satisfaction

  • Esperanza Vera-Toscano

    ()

  • Victoria Ateca-Amestoy
  • Rafael Serrano-del-Rosal

This paper aims to contribute further research on the conceptualization of individual financial satisfaction as a particular domain of satisfaction with life as a whole. Based on the 2003 Survey on Living Conditions and Poverty for Andalucía (Spain) and using a self-reported measure of welfare, ordered probit models are used to analyze the extent to which individual financial satisfaction can be solely explained by income in absolute terms, or alternatively, by taking into account the importance of relative income in its two dimensions: (1) personal aspirations as individual's adaptation to previous and future income levels (intra-individual comparisons), and (2) social comparisons as individual's concern for her peer's income (inter-personal dependency).

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Paper provided by Institute for Social Syudies of Andalusia - Higher Council for Scientific Research in its series IESA Working Papers Series with number 0412.

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Length: 30 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:esa:iesawp:0412
Contact details of provider: Web page: http://www.d-andalucia.csic.es/iesa.htm

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  1. Armin Falk & Markus Knell, . "Choosing the Joneses On the Endogeneity of Reference Groups," IEW - Working Papers 053, Institute for Empirical Research in Economics - University of Zurich.
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