Making inference of British household's happiness efficiency:A Bayesian latent model

Mamatzakis, Emmanuel C. and Tsionas, Mike G. (2021) Making inference of British household's happiness efficiency:A Bayesian latent model. European Journal of Operational Research, 294 (1). pp. 312-326. ISSN 0377-2217

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Abstract

In this paper, we propose a novel approach whereby happiness for British households is identified within a latent model frontier analysis using longitudinal data. By doing so we overcome issues related to the measurement of happiness. To estimate happiness frontier and thereby happiness efficiency, we employ a Bayesian inference procedure organized around Sequential Monte Carlo (SMC) particle filtering techniques. In addition, we propose to consider individual-specific characteristics by estimating happiness efficiency models with individual-specific thresholds to happiness. This is the first study that treats happiness as a latent variable and departs from restrictions that happiness efficiency would be time invariant. Our results show that happiness efficiency is related to the welfare loss associated with potentially misusing the resources that British individuals have at their disposal. Key to happiness is to have certain personality traits, such as being agreeable and extravert as they assist efforts to enhance happiness efficiency. On the other hand, being neurotic impairs happiness efficiency.

Item Type:
Journal Article
Journal or Publication Title:
European Journal of Operational Research
Additional Information:
This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Operational Research, 294, 1, 2021 DOI: 10.1016/j.ejor.2021.01.031
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1800/1802
Subjects:
ID Code:
160648
Deposited By:
Deposited On:
07 Oct 2021 12:50
Refereed?:
Yes
Published?:
Published
Last Modified:
08 Oct 2021 08:16