Relative-income effects on subjective well-being in the cross-section

McBride, Michael

doi:10.1016/s0167-2681(01)00145-7

Cited by 673 publications

(424 citation statements)

References 7 publications

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“…In addition to an obvious point that someone with little concern for status is not likely to become a CEO in the first place, there is also evidence direct evidence supporting this point. 4 This is also consistent with survey findings that wealthier people tend to care more about status (McBride (2001), Dynan and Ravina (2007)). Second, our approach to modelling status concerns is supported by extensive research on organizational economics initiated by the influential work of Cyert and March (1963).…”

Section: Introductionsupporting

confidence: 75%

Security Design with Status Concerns

et al. 2015

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This paper provides a status-based explanation for convertible securities. We consider a dynamic setting in which a status-driven entrepreneur with a project idea decides what security to issue to finance the project and how to manage the project over time. We solve the problem analytically and find that the optimal security is considerably similar to a convertible security. Our model can also explain why relatively riskier companies, such as start-ups or small firms, resort to convertible securities more often, as well as why these securities differ in their conversion ratios. The dynamic nature of our model is key to our results whereas asymmetric information and ensuing agency conflicts play no role, which makes our explanation of convertible securities notably different from existing ones.JEL Classifications: G32, C61, G24, D86.

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Section: Introductionsupporting

confidence: 75%

Security Design with Status Concerns

et al. 2015

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“…Specifically, we use two proxies for economic status: a) a self-assessed question on financial situation (using a survey question of: "How would you describe the economic situation of your household at present time? ", with five response categories ranging from Very bad to Very good), which has been found in previous work to perform better than self-reported income in these countries (Balabanova, et al, 2012; and more general contexts (McBride, 2001;Mentzakis & Moro, 2009) and b) a wealth index composed of responses to 10 questions on possessing certain objects or comforts (i.e. fridge, TV, washing machine (not automatic), mobile telephone, computer, car produced before 2005, automatic washing machine, home cinema, dishwasher and car made since 2005).…”

Section: Adjustment For Confoundingmentioning

confidence: 52%

Estimating the causal effect of alcohol consumption on well-being for a cross-section of 9 former Soviet Union countries

Mentzakis

Suhrcke

Roberts

et al. 2013

Social Science & Medicine

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While the adverse health and economic consequences attributable to alcohol consumption are widely acknowledged, its impact on psychological wellbeing is less well understood. This is to a large extent due to the challenge of establishing causal effects of alcohol consumption when using standard single-equation econometric analyses. Using a unique dataset collected in 2010/11 of 18000 individuals and also community characteristics from nine countries of the former Soviet Union, a region with a major burden of alcohol related ill health, we address this problem by employing an instrumental variable approach to identify any causal effects of alcohol consumption on mental wellbeing. The availability of 24-hour alcohol sales outlets in the neighbourhood of the individuals is used as an instrument, based on theoretical reasoning and statistical testing of its validity. We find that increased alcohol consumption decreases well-being and that ignoring endogeneity leads to underestimation of this effect. This finding adds a further and previously under-appreciated dimension to the expected benefits that could be achieved with more effective alcohol policy in this region.

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“…As for socio-demographic control variables, we employ standard regressors from well-being regressions (e.g., McBride 2001;Stutzer 2004;Dolan et al 2008;Bjoernskov et al 2008;Di Tella et al 2003) to proxy the age of the respondent, marital status, labor and educational status, subjective health, and the beforementioned attitudinal characteristics. As for their precise definition, we stay in line with Bruni and Stanca (2006) and refer to table A.2 in the appendix for details.…”

Section: Datamentioning

confidence: 99%

Information technologies and subjective well-being: does the Internet raise material aspirations?

Lohmann

2015

Oxford Economic Papers

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper examines whether access to modern information technologies, in particular the internet, has an impact on invididual positionality -meaning the degree to which subjective well-being is affected by income relative to others rather than absolute income. We provide empirical evidence that positionality and internet access are intertwined. Exploiting variation over time in a panel of European households, we find stated material aspirations to be significantly positively related to computer access in areas with advanced internet infrastructure. Furthermore, we report cross-sectional evidence from the World Values Survey suggesting an indirect negative effect of internet access on subjective well-being since people who regularly use the internet as a source of information derive less satisfaction from income. Together, the empirical findings highlight the importance of information sets for how individuals evaluate own living conditions relative to others and suggests a vital role for informational globalisation to affect positionality. Terms of use: Documents in

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Relative-income effects on subjective well-being in the cross-section

Cited by 673 publications

References 7 publications

Security Design with Status Concerns

Security Design with Status Concerns

Estimating the causal effect of alcohol consumption on well-being for a cross-section of 9 former Soviet Union countries

Information technologies and subjective well-being: does the Internet raise material aspirations?

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