How Important is Methodology for the Estimates of the Determinants of Happiness?¶
Ferrer‐i‐Carbonell, A., & Frijters, P. (2004). How Important is Methodology for the Estimates of the Determinants of Happiness?. The Economic Journal.
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Primes¶
- Reference-Point Dependence
- Two evaluators with different histories can be set beside each other on their signed departures without anyone establishing where each one's origin sits, which is much of what makes cross-person, cross-site, and cross-period data usable — though differencing cancels a baseline offset, not a difference in how the two use the scale itself, so what it buys is comparability of changes rather than of levels.
This sourceFinds that differencing out person-specific fixed effects changes estimates substantially while treating the reported scale as cardinal rather than ordinal changes them little.
- Two evaluators with different histories can be set beside each other on their signed departures without anyone establishing where each one's origin sits, which is much of what makes cross-person, cross-site, and cross-period data usable — though differencing cancels a baseline offset, not a difference in how the two use the scale itself, so what it buys is comparability of changes rather than of levels.
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