TY  - RPRT
        AU  - Praag, Bernard M. S. van
        TI  - The Connexion between Old and New Approaches to Financial Satisfaction
        PY  - 2004/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1162
        UR  - https://www.iza.org/index.php/publications/dp1162
        AB  - In this paper we compare the new satisfaction evaluation approach, developed in the nineties
by Oswald, Clark, Blanchflower and others with the older income evaluation (IEQ) approach,
developed by Van Praag and Kapteyn in the seventies of the previous century. We find that
both approaches yield strikingly similar results with respect to financial satisfaction. The IEQ-
approach yields additional insights, but it is not well applicable to other life domains than
finance. It is argued that the usual Probit specification implies a specific cardinalization and,
consequently, is less ordinal than usually thought. It is shown that the Probit-approach may
be replaced by three other equivalent specifications that have some computational and
intuitive advantages.
        KW  - cardinal utility
KW  - financial satisfaction
KW  - income evaluation
KW  - Probit-models
        ER  -