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Consumption and life satisfaction at different levels of economic development

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  • Devrim Dumludag

Abstract

The present paper proposes to examine the impact of varying consumption categories on life satisfaction at different levels of development by focusing on transition countries and developed European countries. This is done by looking at the Life in Transition Surveys (I and II) that include reported life satisfaction, as well as control variables such as gender, household size, marital status, age, and education (EBRD, http://www.ebrd.com/pages/research/publications/special/lifeint ransition.shtml 2007 ; http://www.ebrd.com/pages/research/publications/special/transit ionII.shtml 2011 ). The study includes several categories such as expenditures on food, education, and durables. The paper also examines the impact of the reduction in several consumption items on life satisfaction after the 2008 crisis. The econometric results reveal that not all consumption items are statistically significant as determinants of life satisfaction. At different levels of development, the relationship between life satisfaction and consumption differs and some consumption categories have a negative impact on life satisfaction. Finally, the reduction in the level of consumption due to economic crises has a negative impact on life satisfaction. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Devrim Dumludag, 2015. "Consumption and life satisfaction at different levels of economic development," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(2), pages 163-182, June.
    • Handle: RePEc:spr:inrvec:v:62:y:2015:i:2:p:163-182
    DOI: 10.1007/s12232-015-0226-z
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    5. Anna-Maria Kanzola & Konstantina Papaioannou & Demosthenes G. Kollias & Panagiotis E. Petrakis, 2024. "State’s Role in Income Inequality: Social Preferences and Life Satisfaction," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 30(3), pages 279-297, August.
    6. Tetsuya Tsurumi & Rintaro Yamaguchi & Kazuki Kagohashi & Shunsuke Managi, 2020. "Attachment to Material Goods and Subjective Well-Being: Evidence from Life Satisfaction in Rural Areas in Vietnam," Sustainability, MDPI, vol. 12(23), pages 1-20, November.
    7. Chenhong Peng, 2023. "Household Consumption and the Discrepancy Between Economic and Subjective Poverty: The Mediating Roles of Perceived Social Status and Social Connectedness," Journal of Happiness Studies, Springer, vol. 24(5), pages 1703-1727, June.
    8. Tetsuya Tsurumi & Rintaro Yamaguchi & Kazuki Kagohashi & Shunsuke Managi, 2021. "Are Cognitive, Affective, and Eudaimonic Dimensions of Subjective Well-Being Differently Related to Consumption? Evidence from Japan," Journal of Happiness Studies, Springer, vol. 22(6), pages 2499-2522, August.
    9. Ruut Veenhoven & Felicia Chiperi & Xin Kang & Martijn Burger, 2021. "Happiness and Consumption: A Research Synthesis Using an Online Finding Archive* â€," SAGE Open, , vol. 11(1), pages 21582440209, March.
    10. Salvatore Bimonte & Luigi Bosco & Arsenio Stabile, 2020. "Integration and Subjective Well-Being Among Off-Site University Students," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 947-969, February.
    11. Chenhong Peng & Yik-Wa Law, 2023. "How Do Consumption Patterns Influence the Discrepancy Between Economic and Subjective Poverty?," Journal of Happiness Studies, Springer, vol. 24(4), pages 1579-1604, April.
    12. Kenneth Owusu Ansah & Nutifafa Eugene Yaw Dey & Abigail Esinam Adade & Pascal Agbadi, 2022. "Determinants of life satisfaction among Ghanaians aged 15 to 49 years: A further analysis of the 2017/2018 Multiple Cluster Indicator Survey," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-18, January.
    13. Choung, Youngjoo & Pak, Tae-Young & Chatterjee, Swarn, 2021. "Consumption and Life Satisfaction: The Korean Evidence," MPRA Paper 115765, University Library of Munich, Germany.
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    More about this item

    Keywords

    Life satisfaction; Transition countries; Developed countries; Consumption; D11; D6; I31; O1;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D6 - Microeconomics - - Welfare Economics
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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