Does Happiness Adapt to Increase in Income? Evidence from Pakistan Socio-economic Survey (1998-2001)

2016 ◽  
Vol 55 (2) ◽  
pp. 113-122 ◽  
Author(s):  
Hamid Hasan
Keyword(s):  
Random Effect ◽  
Probit Model ◽  
Jel Classification ◽  
Policy Implications ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Short Term ◽  
Hedonic Adaptation ◽  
Short Period ◽  
Economic Survey

The fact that happiness does not increase as income increases over time [the Easterlin Paradox (1974)] has puzzled a number of scholars for a number of decades. The latest research on this topic [Easterlin, et al. (2010)] concludes that happiness increases with an increment in income in the short term but it adapts to this income increment in the long term. The objective of this research is to test whether happiness adapts to income increase in the short term using two-period panel Pakistan Socio-Economic Survey [PSES (1998-2001)]. The paper makes use of a unique question on happiness asked in PSES to resolve two issues simultaneously: unavailability of happiness question in period 1 and potential inconsistency of responses to general happiness question. The paper applies Random Effect Ordered Probit model to investigate the hedonic adaptation effect using various formulations used in the happiness economics literature. The results show positive and statistically significant impact of income change on happiness with weak evidence of adaptation to income since it is statistically insignificant. The result is consistent with the studies that show no adaptation during a short period. Among several reasons for hedonic adaptation, falling positive emotions and rising aspirations are discussed along with causes of happiness and policy implications. The significance of the present research lies in the fact that it is the first study in Pakistan that tests the hedonic adaptation to income and hence contributes to the evidence on happiness dynamics. JEL Classification: I31, D60, C25 Keywords: Happiness, Adaptation, Income, Panel Ordered Probit Model

scholarly journals Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids and Application and Policy Implications

2008 ◽  
Vol 40 (01) ◽  
pp. 267-285 ◽  
Author(s):  
Seong-Hoon Cho ◽  
Steven T. Yen ◽  
J.M. Bowker ◽  
David H. Newman
Keyword(s):  
Willingness To Pay ◽  
Probit Model ◽  
Tobit Model ◽  
Policy Implications ◽  
Land Conservation ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Conservation Easements ◽  
Protest Responses ◽  
Significant Factors

This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.

scholarly journals The determinants of issuers’ long term credit ratings : American S&P500 index

2015 ◽  
Vol 3 (1) ◽  
pp. 78
Author(s):  
ِِAfef Feki Krichene ◽  
Walid Khoufi
Keyword(s):  
Credit Rating ◽  
Credit Ratings ◽  
Probit Model ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Financial Policy ◽  
Significant Determinant ◽  
Short Term ◽  
The Impact

<p>In this paper, we examine the impact that various financial and business profile variables have on credit ratings issued for the S&amp;P500 firms by Moody’s. Our ordered probit model indicates that firms’ financial policy, size, liquidity, interest and debt coverage have the most pronounced effect on credit ratings. Our results show that different coefficients are associated to the increments of interest and debt coverage ratios. Business profile variables are not significant. Liquidity variable is also a significant determinant of the issuer long-term credit rating and not just the short term one.</p>

Do the heterogeneous determinants of life satisfaction affect differently across borrowers of diverse credit sources? A propensity score approach

2018 ◽  
Vol 45 (8) ◽  
pp. 1142-1158 ◽  
Author(s):  
Tiken Das ◽  
Manesh Choubey
Keyword(s):  
Life Satisfaction ◽  
Propensity Score ◽  
Probit Model ◽  
Ordered Probit ◽  
Primary Data ◽  
Ordered Probit Model ◽  
Future Research ◽  
Content Type ◽  
Credit Access ◽  
Physical Assets

Purpose The purpose of this paper is to evaluate the non-monetary effect of credit access by providing an econometric framework which controls the problem of selection bias. Design/methodology/approach The study is conducted in Assam, India and uses a quasi-experiment design to gather primary data. The ordered probit model is used to evaluate the non-monetary impact of credit access. The paper uses a propensity score approach to check the robustness of the ordered probit model. Findings The study confirms the positive association of credit access to life satisfaction of borrowers. It is found that, in general, rural borrower’s life satisfaction is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ life satisfaction is remarkably different across credit sources. Research limitations/implications The study argues to provide productive investment opportunities to semiformal and informal borrowers while improving their life satisfaction score. Although the results are adjusted for selection and survivorship biases, it is impossible with the available data to assess which non-income factors explain the findings, and therefore this limitation is left to future research. Originality/value The study contributes to the literature of rural credit by assessing the probable differences among formal, semiformal and informal credit sources with respect to non-monetary impacts.

scholarly journals The Organization of Political Violence by Insurgencies

2012 ◽  
Vol 18 (3) ◽  
Author(s):  
Roos Haer
Keyword(s):  
Political Violence ◽  
Probit Model ◽  
Ordered Probit ◽  
Process Theory ◽  
Ordered Probit Model ◽  
Armed Groups ◽  
Human Right ◽  
Armed Group ◽  
The World ◽  
The Relationship

AbstractA range of theories have attempted to explain the variation in civilian abuse of warring parties. Most of these theories have been focused on the strategic environment in which these acts take place. Less attention is devoted to the perpetrators of these human right abuses themselves: the armed groups. This study tries to fill this niche by using the organizational process theory in which it is assumed that armed groups, like every organization, struggles for survival. The leader tries to ensure the maintenance of her armed group by increasing her control over her troops. The relationship between the level of control and the perpetrated civilian abuse is examined with a new dataset on the internal structure of more than 70 different armed groups around the world. With the help of a Bayesian Ordered Probit model, this new dataset on civilian abuse is analyzed. The results show that especially particular incentives play an important role.

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