@techreport{Winkelmann2004Income,
abstract = {Empirical studies on the relationship between income and happiness commonly use standard
ordered response models, the most well-known representatives being the ordered logit and
the ordered probit. However, these models restrict the marginal probability effects by design,
and therefore limit the analysis of distributional aspects of a change in income, that is, the
study of whether the income effect depend on a person's happiness. In this paper we
pinpoint the shortcomings of standard models and propose two alternatives, namely
generalized threshold and sequential models. With data of two waves of the German Socio-
Economic Panel, 1984 and 1997, we show that the more general models yield different
marginal probability effects than standard models.},
author = {Rainer Winkelmann and Stefan Boes},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {I31; C25; 330; ordered response models; marginal effects; subjective well-being; Einkommen; Lebensqualit\"{a}t; Lebensstandard; Sch\"{a}tzung; Deutschland; Lebenszufriedenheit},
language = {eng},
number = {1175},
title = {Income and Happiness : New Results from Generalized Threshold and Sequential Models},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20415},
year = {2004}
}
