Presenter: Maoliang
Ye
Topic: Does
Money Buy Happiness? Evidence from Twins in Urban China
Time: 16:00-17:30,
Mar 5, 2013
Location: At
608 Acedamic Hall
Abstract This
paper estimates the effect of income on individual self-reported happiness using
unique Chinese twins data. To control for omitted genetic factors and family
background, we use a within-monozygotic-twin-pair fixed-effects model. The
instrumental variable fixed-effects method is used to correct measurement
error bias. The results are robust after we address concerns about potential
biases of within-monozygotic-twin-pair estimates, use various measures of
income and wealth, consider the potential cross effect of twin sibling’s income,
and address the concern reverse causality. This paper adds to the literature on
the effect of income on happiness, and to the best of our knowledge, it is the
first such study which draws on twins data to correct both omitted variable bias
and measurement error bias.
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