Fischer, Justina AV (2010): Accounting for Unobserved Country Heterogeneity in Happiness Research: Country Fixed Effects versus Region Fixed Effects.
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Many empirical studies are ambiguous about whether good formal institutions are conducive to subjective well-being or not. Possibly, this ambiguity is caused by cross-section models that do not account for unobserved cultural and institutional effects. Using the World Value Survey 1980-2005, this paper supports a positive relation in a country panel framework that accounts for unobserved, time-invariant country heterogeneity. This study also shows that using supra-national region dummies (by geography or language) in a country-random effects model appears to be a sufficient substitution for omitted country fixed effects.
|Item Type:||MPRA Paper|
|Original Title:||Accounting for Unobserved Country Heterogeneity in Happiness Research: Country Fixed Effects versus Region Fixed Effects|
|Keywords:||Happiness; life satisfaction; subjective well-being; quality of life; institutions; democracy; rule of law; political constraints; policy implications; panel econometrics|
|Subjects:||H - Public Economics > H1 - Structure and Scope of Government > H10 - General
H - Public Economics > H4 - Publicly Provided Goods > H40 - General
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I31 - General Welfare
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C33 - Models with Panel Data; Longitudinal Data; Spatial Time Series
|Depositing User:||Justina AV Fischer|
|Date Deposited:||25. Apr 2010 23:27|
|Last Modified:||11. Feb 2013 22:11|
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