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Searching for Money Illusion in Europe

Author

Listed:
  • Alberto Montagnoli

    (University of Sheffiled)

  • Andrea Vaona

    (Department of Economics (University of Verona))

Abstract

We apply recent money illusion tests on data on individual life satisfaction from the Eurobarometer for the period 1980–2003. The null hypothesis of no money illusion cannot be rejected. Different nominal rigidities across European countries and EMU countries, specifically, cannot be explained by different degrees of money illusion.

Suggested Citation

  • Alberto Montagnoli & Andrea Vaona, 2015. "Searching for Money Illusion in Europe," Working Papers 10/2015, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:10/2015
    as

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    References listed on IDEAS

    as
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    7. Deckers Thomas & Falk Armin & Schildberg-Hörisch Hannah, 2016. "Nominal or Real? The Impact of Regional Price Levels on Satisfaction with Life," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1337-1358, September.
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    More about this item

    Keywords

    cost of living; subjective well-being; price index; money illusion;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D60 - Microeconomics - - Welfare Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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