IDEAS home Printed from https://ideas.repec.org/p/fln/dgwopa/004.html
   My bibliography  Save this paper

The Benefits, Challenges and Insights of a Dynamic Panel Assessment of Life Satisfaction

Author

Listed:
  • Alan Piper

    (Europa-Universität Flensburg, International Institute of Management)

Abstract

This study discusses and employs System Generalised Methods of Moments (GMM) dynamic panel analysis to investigate life satisfaction. There are many benefits that such an investigation provides, though commensurate challenges too. Previous attempts to employ dynamic models within life satisfaction research have, in the main and for different reasons, not been wholly successful. This article explains why, how such research can be improved and undertaken in the future, as well as offering insights into life satisfaction and its dynamics. A key insight is that much of the impact of any commonly measured variable on well-being is contemporaneous.

Suggested Citation

  • Alan Piper, 2015. "The Benefits, Challenges and Insights of a Dynamic Panel Assessment of Life Satisfaction," Danish-German Working Papers 004, Europa-Universität Flensburg, International Institute of Management (IIM);University of Southern Denmark, Department of Border Region Studies (IFG).
    • Handle: RePEc:fln:dgwopa:004
    as

    Download full text from publisher

    File URL: https://www.uni-flensburg.de/fileadmin/content/institute/iim/dokumente/forschung/danish-german-working-paper-series/4-danish-german-research-paper-no-4.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LLC, vol. 3(1), pages 1-31, March.
    2. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    3. Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LLC, vol. 9(1), pages 86-136, March.
    6. Qari, Salmai, 2014. "Marriage, adaptation and happiness: Are there long-lasting gains to marriage?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 29-39.
    7. Flannery, Mark J. & Hankins, Kristine Watson, 2013. "Estimating dynamic panel models in corporate finance," Journal of Corporate Finance, Elsevier, vol. 19(C), pages 1-19.
    8. Alan Piper, 2015. "Heaven knows I'm miserable now: overeducation and reduced life satisfaction," Education Economics, Taylor & Francis Journals, vol. 23(6), pages 677-692, December.
    9. Stutzer, Alois & Frey, Bruno S., 2006. "Does marriage make people happy, or do happy people get married?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 326-347, April.
    10. Wunder, Christoph, 2012. "Does subjective well-being dynamically adjust to circumstances?," Economics Letters, Elsevier, vol. 117(3), pages 750-752.
    11. Bottan, Nicolas Luis & Perez Truglia, Ricardo, 2011. "Deconstructing the hedonic treadmill: Is happiness autoregressive?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 224-236, May.
    12. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    13. Michael Clemens & Samuel Bazzi, 2009. "Blunt Instruments: On Establishing the Causes of Economic Growth," Working Papers 171, Center for Global Development.
    14. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    15. Alan Piper, 2014. "Zukunftsangst! Fear of (and Hope for) the Future and Its Impact on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 706, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Godfrey,L. G., 1991. "Misspecification Tests in Econometrics," Cambridge Books, Cambridge University Press, number 9780521424592, December.
    17. Powdthavee, Nattavudh, 2009. "I can't smile without you: Spousal correlation in life satisfaction," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 675-689, August.
    18. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, University Library of Munich, Germany.
    19. Piper, Alan T. & Pugh, Geoffrey T., 2016. "Issues in the estimation of dynamic happiness models: A comment on "Does childhood predict adult life satisfaction?"," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-6.
    20. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    21. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    22. repec:rdg:wpaper:em-dp2010-01 is not listed on IDEAS
    23. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "Does Childhood Predict Adult Life Satisfaction? Evidence from British Cohort Surveys," Economic Journal, Royal Economic Society, vol. 124(580), pages 688-719, November.
    24. Lasse Steiner & Bruno Frey & Simone Hotz, 2015. "European Capitals of Culture and life satisfaction," Urban Studies, Urban Studies Journal Limited, vol. 52(2), pages 374-394, February.
    25. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    26. Piper, Alan T., 2015. "Sliding down the U-shape? A dynamic panel investigation of the age-well-being relationship, focusing on young adults," Social Science & Medicine, Elsevier, vol. 143(C), pages 54-61.
    27. Nabamita Dutta & Peter T. Leeson & Claudia R. Williamson, 2013. "The Amplification Effect: Foreign Aid's Impact on Political Institutions," Kyklos, Wiley Blackwell, vol. 66(2), pages 208-228, May.
    28. Marina Della Giusta & Sarah Jewell & Uma Kambhampati, 2010. "Anything to Keep You Happy?," Economics Discussion Papers em-dp2010-01, Department of Economics, University of Reading.
    29. Piper, Alan T., 2012. "Dynamic Analysis and the Economics of Happiness: Rationale, Results and Rules," MPRA Paper 43248, University Library of Munich, Germany, revised Dec 2012.
    30. Hall, Alastair R., 2004. "Generalized Method of Moments," OUP Catalogue, Oxford University Press, number 9780198775201, Decembrie.
    31. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LLC, vol. 3(2), pages 168-177, June.
    32. Sang H. Lee & John Levendis & Luis Gutierrez, 2012. "Telecommunications and economic growth: an empirical analysis of sub-Saharan Africa," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 461-469, February.
    33. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    34. 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.
    35. Piper, Alan, 2013. "A Note on Modelling Dynamics in Happiness Estimations," MPRA Paper 49364, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alan Piper, 2022. "Optimism, pessimism and life satisfaction: an empirical investigation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 177-208, June.
    2. Seong-Hoon Cho & Moonwon Soh & Kihyun Park & Hyun Jae Kim, 2022. "Impact of the rise of solo living and an ageing population on residential energy consumption in South Korea," Energy & Environment, , vol. 33(2), pages 399-416, March.
    3. Slesman, Ly, 2022. "The elusive curse of natural resources on happiness," Resources Policy, Elsevier, vol. 79(C).
    4. Piper, Alan T., 2015. "Sliding down the U-shape? A dynamic panel investigation of the age-well-being relationship, focusing on young adults," Social Science & Medicine, Elsevier, vol. 143(C), pages 54-61.
    5. Alan T. Piper, 2016. "Sleep duration and life satisfaction," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(4), pages 305-325, December.
    6. Doris Läpple & Colin A. Carter & Cathal Buckley, 2022. "EU milk quota abolition, dairy expansion, and greenhouse gas emissions," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 125-142, January.
    7. Heri Bezić & Davor Mance & Davorin Balaž, 2022. "Panel Evidence from EU Countries on CO 2 Emission Indicators during the Fourth Industrial Revolution," Sustainability, MDPI, vol. 14(19), pages 1-25, October.
    8. Hong, Seock-Jin & Farris, Martin Theodore & Pohlen, Terrance L. & Idug, Yavuz, 2023. "Exploring the impact of working capital in the U.S. aviation industry for profitability and shareholder value," Transport Policy, Elsevier, vol. 144(C), pages 90-101.
    9. Srofenyoh, Francis Yao & Agyei-Henaku, Kofi Aaron Aboa-Offei & Badu-Prah, Charlotte & Agyeiwaa-Afrane, Akua & Gidiglo, Ferguson Korbla & Djokoto, Justice Gameli, 2023. "Aid-to-Production, Consumption and Agricultural Growth in Developing Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(4), October.
    10. Meer Jan & Amdadullah Baloch & Abdullah Abdulaziz Bawazir & Abdul Qayyum & Mahfoudh Hussein Mgammal, 2024. "Innovation and Path to Inclusiveness in Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 330-337, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alan Piper, 2018. "Adult life satisfaction largely (though not wholly) contemporaneous," Discussion Papers 028, Europa-Universität Flensburg, International Institute of Management.
    2. Piper, Alan T., 2014. "An Investigation into Happiness, Dynamics and Adaptation," MPRA Paper 57778, University Library of Munich, Germany.
    3. Piper, Alan T., 2018. "Adult life satisfaction: largely (though not wholly) contemporaneous? A System General Method of Moments dynamic panel analysis," MPRA Paper 85601, University Library of Munich, Germany.
    4. Piper, Alan T., 2013. "Happiness, Dynamics and Adaptation," MPRA Paper 52342, University Library of Munich, Germany.
    5. Alan Piper, 2023. "What Does Dynamic Panel Analysis Tell Us About Life Satisfaction?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 376-394, June.
    6. Piper, Alan, 2013. "A Note on Modelling Dynamics in Happiness Estimations," MPRA Paper 49364, University Library of Munich, Germany.
    7. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    8. Mohcine Bakhat & José M. Labeaga & Xavier Labandeira & Xiral Lñpez, 2013. "Economic Crisis and Elasticities of Car Fuels: Evidence for Spain," Working Papers fa15-2013, Economics for Energy.
    9. Bravo-Ortega, Claudio & García Marín, Álvaro, 2011. "R&D and Productivity: A Two Way Avenue?," World Development, Elsevier, vol. 39(7), pages 1090-1107, July.
    10. Mateo Zokalj, 2016. "The impact of population aging on public finance in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 40(4), pages 383-412.
    11. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    12. Scott, K. Rebecca, 2011. "Demand and Price Volatility: Rational Habits in International Gasoline Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2q87432b, Department of Agricultural & Resource Economics, UC Berkeley.
    13. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    14. Paleologou, Suzanna-Maria, 2022. "Happiness, democracy and socio-economic conditions: Evidence from a difference GMM estimator," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    15. Dolton, Peter & Bondibene, Chiara Rosazza & Stops, Michael, 2015. "Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK," Labour Economics, Elsevier, vol. 37(C), pages 54-76.
    16. Nicolas Van de Sijpe, 2013. "Is Foreign Aid Fungible? Evidence from the Education and Health Sectors," World Bank Economic Review, World Bank Group, vol. 27(2), pages 320-356.

    More about this item

    Keywords

    Life Satisfaction; Dynamic Panel Analysis; GMM; Happiness; Subjective Well-Being;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fln:dgwopa:004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kathrin Thomsen (email available below). General contact details of provider: https://www.uni-flensburg.de/iim/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.