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Building Financial Satisfaction

Author

Listed:
  • Esperanza Vera-Toscano
  • Victoria Ateca-Amestoy
  • Rafael Serrano-del-Rosal

Abstract

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).

Suggested Citation

  • Esperanza Vera-Toscano & Victoria Ateca-Amestoy & Rafael Serrano-del-Rosal, 2004. "Building Financial Satisfaction," IESA Working Papers Series 0412, Institute for Social Syudies of Andalusia - Higher Council for Scientific Research.
    • Handle: RePEc:esa:iesawp:0412
    as

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    References listed on IDEAS

    as
    1. Armin Falk & Markus Knell, "undated". "Choosing the Joneses On the Endogeneity of Reference Groups," IEW - Working Papers 053, Institute for Empirical Research in Economics - University of Zurich.
    2. Bruno Frey & Matthias Benz & Alois Stutzer, 2004. "Introducing Procedural Utility: Not Only What, but Also How Matters," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 377-401, September.
    3. John L. Eltinge & William M. Sribney, 1997. "Some basic concepts for design-based analysis of complex survey data," Stata Technical Bulletin, StataCorp LP, vol. 6(31).
    4. van Praag, Bernard M. S., 2004. "The Connexion between Old and New Approaches to Financial Satisfaction," IZA Discussion Papers 1162, Institute of Labor Economics (IZA).
    5. Ada Ferrer-i-Carbonell, 2002. "Income and Well-being," Tinbergen Institute Discussion Papers 02-019/3, Tinbergen Institute.
    6. Ada Ferrer-i-Carbonell, 2002. "Subjective Questions to Measure Welfare and Well-being," Tinbergen Institute Discussion Papers 02-020/3, Tinbergen Institute.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial satisfaction; income valuation; comparison income; reference group; internal norm; external norm.;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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