Beegle, Kathleen; Himelein, Kristen; Ravallion, Martin - In: Journal of Economic Behavior & Organization 81 (2012) 2, pp. 556-570
The inferences drawn from the most widely used regression models of subjective welfare are subject to a “frame-of-reference bias,” stemming from non-ignorable heterogeneity in subjective scales, such as what it means to be “rich” or “poor.” To test for this bias, respondents in...