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Money Illusion Under Test

Author

Listed:
  • Stefan Boes

    (Socioeconomic Institute, University of Zurich)

  • Markus Lipp
  • Rainer Winkelmann

    (Socioeconomic Institute, University of Zurich)

Abstract

Much progress has been made in recent years in developing and applying a direct measure of utility using survey questions on satisfaction with income and with life in general. In this paper we apply this new type of measurement to the study of money illusion. Using data from the German Socio-Economic Panel for the years 1993 to 2003, we cannot reject the hypothesis of no money illusion.

Suggested Citation

  • Stefan Boes & Markus Lipp & Rainer Winkelmann, 2005. "Money Illusion Under Test," SOI - Working Papers 0514, Socioeconomic Institute - University of Zurich.
    • Handle: RePEc:soz:wpaper:0514
    as

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    File URL: https://www.zora.uzh.ch/id/eprint/52209/1/wp0514.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    North-South; cost-of-living; subjective well-being; fixed effects;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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