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The Importance of Sampling Frequency for Estimates of Well-Being Dynamics

Author

Listed:
  • Hoskins, Stephen

    (Singapore Management University)

  • Johnston, David W.

    (Monash University)

  • Kunz, Johannes S.

    (Monash University)

  • Shields, Michael A.

    (Monash University)

  • Staub, Kevin E.

    (University of Melbourne)

Abstract

Using a high-frequency panel survey, we examine the sensitivity of estimated self-reported well-being (SWB) dynamics to using monthly, quarterly, and yearly data. This is an important issue if SWB is to be used to evaluate policy. Results from autoregressive models that account for individual-level heterogeneity indicate that the estimated persistence using yearly data is near zero. However, estimated persistence from monthly and quarterly data is substantial. We estimate that persistence to shocks typically lasts around six months and has a net present value of 75-80 per cent of the contemporaneous effect. Estimates are similar for different domains of SWB.

Suggested Citation

  • Hoskins, Stephen & Johnston, David W. & Kunz, Johannes S. & Shields, Michael A. & Staub, Kevin E., 2024. "The Importance of Sampling Frequency for Estimates of Well-Being Dynamics," IZA Discussion Papers 17101, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17101
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    References listed on IDEAS

    as
    1. Alexander Chudik & M. Hashem Pesaran & Jui‐Chung Yang, 2018. "Half‐panel jackknife fixed‐effects estimation of linear panels with weakly exogenous regressors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(6), pages 816-836, September.
    2. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    3. Wunder, Christoph, 2012. "Does subjective well-being dynamically adjust to circumstances?," Economics Letters, Elsevier, vol. 117(3), pages 750-752.
    4. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    5. Bottan, Nicolas Luis & Perez Truglia, Ricardo, 2011. "Deconstructing the hedonic treadmill: Is happiness autoregressive?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 224-236, May.
    6. Geert Dhaene & Koen Jochmans, 2015. "Split-panel Jackknife Estimation of Fixed-effect Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(3), pages 991-1030.
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    10. Stephen Hoskins & David W. Johnston & Johannes S. Kunz & Michael A. Shields & Kevin E. Staub, 2024. "Heterogeneity in the Persistence of Health: Evidence from a Monthly Micro Panel," Papers 2024-06, Centre for Health Economics, Monash University.
    11. Jan-Emmanuel de Neve & Andrew E. Clark & Christian Krekel & Richard Layard & Gus O’donnell, 2020. "Taking a wellbeing years approach to policy choice," PSE-Ecole d'économie de Paris (Postprint) halshs-02973078, HAL.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    well-being; life satisfaction; happiness; dynamic panel data; panel autoregression; adaptation; persistence;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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    This paper has been announced in the following NEP Reports:

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