Repository logo
 

Personality, well-being and the marginal utility of income: What can we learn from random coefficient models?

dc.contributor.authorSchurer, Stefanie
dc.contributor.authorYong, Jongsay
dc.date.accessioned2012-02-24T02:49:22Z
dc.date.accessioned2022-07-05T02:29:25Z
dc.date.available2012-02-24T02:49:22Z
dc.date.available2022-07-05T02:29:25Z
dc.date.copyright2012
dc.date.issued2012
dc.description.abstractFixed effects models are the gold standard in empirical well-being research, however, their applicability is limited to controlling for intercept heterogeneity and identifying effects of time-varying variables. This paper investigates the usefulness of random coefficient models in controlling for heterogeneity in well-being and the marginal utility of income, and explores whether these forms of heterogeneity depend on the Big-Five personality traits. Using unique Australian longitudinal data that have personality measures available in two time periods we show that a Mundlak-adjusted random coefficient model yields almost identical results as the fixed effects model, making it a powerful modelling alternative when interest lies in multiple forms of heterogeneity. Big-Five personality explains 10 percent of the variation in intercept heterogeneity and 6-7 percent of the variation in the marginal utility of income. For women, we suggest that the marginal utility of income is significantly linked to personality, implying important gender-differences in the expected effectiveness of financial incentives to influence behaviour.en_NZ
dc.formatpdfen_NZ
dc.identifier.urihttps://ir.wgtn.ac.nz/handle/123456789/18617
dc.language.isoen_NZ
dc.publisherTe Herenga Waka—Victoria University of Wellingtonen_NZ
dc.relation.ispartofseriesSEF Working Paper Seriesen_NZ
dc.rights.rightsholderwww.vuw.ac.nz/sefen_NZ
dc.subjectSubjective well-beingen_NZ
dc.subjectMarginal utility of incomeen_NZ
dc.subjectHeterogeneityen_NZ
dc.subjectPersonalityen_NZ
dc.subjectRandom coefficient modelsen_NZ
dc.titlePersonality, well-being and the marginal utility of income: What can we learn from random coefficient models?en_NZ
dc.typeTexten_NZ
vuwschema.contributor.unitSchool of Economics and Financeen_NZ
vuwschema.subject.anzsrcfor149999 Economics not elsewhere classifieden_NZ
vuwschema.subject.anzsrcforV2389999 Other economics not elsewhere classifieden_NZ
vuwschema.subject.marsden149999 Economics not elsewhere specifieden_NZ
vuwschema.type.vuwWorking or Occasional Paperen_NZ

Files

Original bundle

Now showing 1 - 2 of 2
Loading...
Thumbnail Image
Name:
Working Paper.pdf
Size:
3.73 MB
Format:
Adobe Portable Document Format
Description:
Working Paper
Loading...
Thumbnail Image
Name:
Permission form.pdf
Size:
168.08 KB
Format:
Adobe Portable Document Format
Description:
Permission form