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Adult life satisfaction: largely (though not wholly) contemporaneous? A System General Method of Moments dynamic panel analysis

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  • Piper, Alan T.

Abstract

This study discusses and employs System Generalised Methods of Moments (GMM) dynamic panel analysis to investigate adult life satisfaction. This method enables an investigation of the dynamics of life satisfaction, and is undertaken with and without lags of the independent variables. The results indicate that, for this particular dynamic panel model, life satisfaction is largely (though not wholly) contemporaneous. Some caveats are offered with this general result, and nuance provided with the inclusion of lagged independent variables. A key exception is with regard to health, with past and current health contributing significantly to current life satisfaction. Given the complexity of the econometric method and its limited previous use in the well-being area, advice is given and potential pitfalls highlighted. Furthermore, while static models (like fixed effects) omit dynamics and are often misspecified, the results from the dynamic panel analysis are supportive of the more common fixed effects analysis.

Suggested Citation

  • Piper, Alan T., 2018. "Adult life satisfaction: largely (though not wholly) contemporaneous? A System General Method of Moments dynamic panel analysis," MPRA Paper 85601, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85601
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    Cited by:

    1. Chandan Sharma, 2021. "Does Corruption Sand The Wheels Of Financial Sector Development? Evidence From Global Panel Data," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-32, December.
    2. Lahsen, Amina. A & Piper, Alan T., 2018. "Property Rights and Intellectual Property Protection, GDP growth and Well-Being in Latin America," MPRA Paper 90034, University Library of Munich, Germany.
    3. Alan Piper, 2019. "An Investigation into the Reported Closing of the Nicaraguan Gender Gap," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1391-1413, August.
    4. Amina Ahmed Lahsen & Alan T. Piper, 2019. "Property rights and intellectual property protection, GDP growth and individual well-being in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-21, December.

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    More about this item

    Keywords

    Life Satisfaction; Dynamic Panel Analysis; GMM; Happiness; Subjective Well-Being;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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