Ferrer‐i‐Carbonell, A., &Frijters, P. (2004). How important is methodology for the estimates of the determinants of happiness?. The Economic Journal, 114(497), 641-659.
Psychologists and sociologists usually interpret happiness scores as cardinal and comparable across respondents, and thus run OLS regressions on happiness and changes in happiness. Economists usually assume only ordinality and have mainly used ordered latent response models, thereby not taking satisfactory account of fixed individual traits. We address this problem by developing a conditional estimator for the fixed‐effect ordered logit model. We find that assuming ...