Empirical studies on the relationship between income and happiness commonly use standard ordered response models, the … probability effects by design, and therefore limit the analysis of distributional aspects of a change in income, that is, the … study of whether the income effect depend on a person's happiness. In this paper we pinpoint the shortcomings of standard …

-2004 shows that income has only a minor effect on positive subjective well-being but a large effect on negative well-being. …