Clark, Andrew E.; Etilé, Fabrice; Postel-Vinay, Fabien; … - 2004
This paper models the relationship between income and reported well-being using latent class techniques applied to … strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual … marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution. …