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Cited by 98Income, Poverty, and InequalityPsychological Well-being and Life SatisfactionEconomic and Environmental Valuation

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Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity

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Schwarze, Johannes·2003·Review of Income and Wealth
DOI 10.1111/1475-4991.00092
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Abstract

In this paper, the equivalence scale elasticity will be estimated by using individual panel data on income satisfaction from the German Socio‐Economic Panel Study (GSOEP). Satisfaction or happiness data have been more frequently used by economists in recent years to analyze individual well‐being. The approach differs from other subjective approaches as respondents are requested to evaluate current income rather than income in hypothetical situations. The estimated scale elasticity is higher compared to those from other subjective approaches based on German data. In addition, panel data enable different scale use by the respondents to be controlled. It can be shown that elasticity decreases when unobserved fixed‐effects are controlled for.

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Metadata

Authors
Schwarze, J.
Affiliations
German Institute for Economic Research (DE)
Corresponding author
Schwarze, Johannes
Venue
Review of Income and Wealth
Publisher
Wiley
Published
2003-09
Volume
49
Issue
3
Pages
359-372
ISSN
  • 0034-6586 (ISSN-L)
  • 1475-4991
DOI
10.1111/1475-4991.00092
OpenAlex
W3122843191
Cited by
98
References
2
Citations by year
2025: 2 · 2024: 2 · 2023: 5 · 2022: 1 · 2021: 4 · 2020: 8 · 2018: 3 · 2017: 7 · 2016: 2 · 2015: 2 · 2014: 5 · 2013: 12 · 2012: 8
FWCI
14.34
Type
journal article
Language
en
Open access
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor, 8 d)
Locations
  • Review of Income and Wealth (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
  • Social Sciences › Psychology › Social Psychology › Psychological Well-being and Life Satisfaction
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
Keywords
equivalence scales, income satisfaction, happiness, subjective well-being, panel data, scale elasticity, German Socio-Economic Panel

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CoChat. (2026). Citation check: Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity. https://app.cochat.ai/papers/10.1111/1475-4991.00092
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Schwarze, J. (2003). Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity. Review of Income and Wealth. https://doi.org/10.1111/1475-4991.00092