Single-Variable Threshold Effects in Ordered Response Models With an Application to Estimating the Income-Happiness Gradient
Bibliographic Data
| ID | 19417422 |
|---|---|
| Authors | Andrew Hodge (0000-0002-7203-9233, The University of Queensland), Sriram Shankar (0000-0001-9096-9883, Western Sydney University) |
| Year | 2016 |
| Volume | 34 |
| Issue | 1 |
| Pages | 42-52 |
| Publication date | 2016-01-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/07350015.2014.991785 |
| OpenAlex | W2085085227 |
| Language | EN |
| References cited | 33 |
This short article extends well-known threshold models to the ordered response setting. We consider the case where the sample is endogenously split to estimate regime-dependent coefficients for one variable of interest, while keeping the other coefficients and auxiliary parameters constant across the threshold. We use Monte Carlo methods to examine the behavior of the model. In addition, we derive the formulae for the partial effects associated with the model. We apply our threshold model to the relationship between income and self-reported happiness using data drawn from the U.S. General Social Survey. While the findings suggest the presence of a threshold in the income-happiness gradient at approximately U.S. $76,000, no evidence is found in support of a satiation point.
Econometrics · Economics · Happiness · Mathematical analysis · Monte Carlo method · Physics · Statistics · Threshold model · Computer Science · Income, Poverty, and Inequality · Mathematics · Psychological Well-being and Life Satisfaction · Psychology · Social Psychology · Urban, Neighborhood, and Segregation Studies
Modeling Ordered Choices
Happiness Inequality in the United States
Development, Freedom, and Rising Happiness
Sample Splitting and Threshold Estimation
Testing hypotheses about interaction terms in nonlinear models
The new stylized facts about income and subjective well-being.
Instrumental Variable Estimation of a Threshold Model
Inference When a Nuisance Parameter Is Not Identified Under the Null Hypothesis
Fixed Effects and Bias Due to the Incidental Parameters Problem in the Tobit Model
Subjective Well-Being and Income
Tests for Parameter Instability and Structural Change With Unknown Change Point
Optimal Tests when a Nuisance Parameter is Present Only Under the Alternative
Consistent Estimation of the Fixed Effects Ordered Logit Model
Consistency and Limiting Distribution of the Least Squares Estimator of a Threshold Autoregressive Model
Whistle While You Work
Happiness, Growth, and Public Policy †
High income improves evaluation of life but not emotional well-being
Threshold effects in non-dynamic panels
The Origins of Happiness
Employment status and perceived health condition
Remittances, financial development, and growth
Relative Income, Happiness, and Utility
Is happiness relative
| Highly cited | No |
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