Zusammenfassung:
Response times contain information about economically relevant but unobserved variables like willingness to pay, preference intensity, quality, or happiness. Here, we provide a general characterization of the properties of latent variables that can be detected using response time data. Our characterization unifies and generalizes results in the literature, solves identification problems of binary response models, and has many new applications. We apply the result to test and support the hypothesis that marginal happiness is decreasing in income, a principle that is commonly accepted but so far not established empirically.