Study | Akay (2012): study DE 1985 |

Title | Happy Taxpayers? Income Taxation and Well-Being. |

Source | Discussion Paper, 2012, Nr. 6999, Institute for the Study of Labor (IZA), Bonn |

URL | http://hdl.handle.net/10419/67179 |

Public | 16-65 aged, taxpayers, Germany, 1985-2010 |

Sample | Probability stratified sample |

Non-Response | |

Respondents N = | 188412 |

Correlate | |

Author's label | Net income (log) |

Page in Source | 8,29 |

Our classification | Personal income |

Operationalization | Log net income |

Observed distribution | M= 2614,84; SD= 1572,7; min.= 350, max. = 114.856 |

Error Estimates | s.e.= .017 |

Remarks | In 2010 euro's |

Observed Relation with Happiness | ||

Happiness Measure | Statistics | Elaboration/Remarks |

O-SLW-c-sq-n-11-d | r=+.35 p < .01 | Log net income |

O-SLW-c-sq-n-11-d | b=+.30 p < .01 | b Singles +.376(01) Couples +.308(01) |

O-SLW-c-sq-n-11-d | b-iv=+.29 p < .01 | b and b-iv controlled for: - log taxes - working hours - age squared - region east germany - foreigner - household size - employment status - gender - marital status - health |

O-SLW-c-sq-n-11-d | b=+.32 p < .01 | b controlled for: - log lagged taxes (t-1) instead of taxes other controls the same |

O-SLW-c-sq-n-11-d | b=+.33 p < .01 | b controlled for: - income tax other controls the same |

Appendix 1: Happiness measures used

Code | Full Text |

O-SLW-c-sq-n-11-d | Selfreport on single question: Taking all things together, how satisfied are you with your life these days? Please answer with the help of this scale. For instance, when you are totally satisfied with your life, please tick '10'. When you are totally unsatisfied with your life, please tick '0'. You may use all values in between to indicate that you are neither totally satisfied nor totally unsatisfied." 10 totally satisfied 9 8 7 6 5 4 3 2 1 0 totally unsatisfied |

Appendix 2: Statistics used

Symbol | Explanation |

b | REGRESSION COEFFICIENT (non-standardized) by LEAST SQUARES (OLS) Type: test statistic Measurement level: Correlate: metric, Happiness: metric Theoretical range: unlimited Meaning: b > 0 A higher correlate level corresponds with a higher happiness rating on average. B < 0 A higher correlate level corresponds with a lower happiness rating on average. B = 0 Not any correlation with the relevant correlate. |

b-iv | REGRESSION COEFFICIENT in regression ananlysis with instrumental variable as one or more explanatory variables Type: test statistic. Correlate level: metric, Happiness level: metric Theoretical range: unlimited The instrument must be correlated with the endogenous explanatory variables, conditionally on the other covariates. If this correlation is strong, then the instrument is said to have a strong first stage. A weak correlation may provide misleading inferences about parameter estimates and standard errors. The instrument cannot be correlated with the error term in the explanatory equation, conditionally on the other covariates. In other words, the instrument cannot suffer from the same problem as the original predicting variable. If this condition is met, then the instrument is said to satisfy the exclusion restriction. See Mardia Kent & Bibby (1979): Multivariate Analysis |

r | PRODUCT-MOMENT CORRELATION COEFFICIENT (Also "Pearson's correlation coefficient' or simply 'correlation coefficient') Type: test statistic. Measurement level: Correlate: metric, Happiness: metric Range: [-1; +1] Meaning: r = 0 « no correlation , r = 1 « perfect correlation, where high correlate values correspond with high happiness values, and r = -1 « perfect correlation, where high correlate values correspond with low happiness values. |

Ruut Veenhoven, World Database of Happiness, Collection of Correlational Findings, Erasmus University Rotterdam.

https://worlddatabaseofhappiness.eur.nl