Park, Albert; Cai, Shu - HKUST Institute for Emerging Market Studies (IEMS), … - 2015
transitory income shocks. The model predicts that SWB is affected by unanticipated rather than anticipated income, and is more … influenced by permanent rather than transitory income shocks. We hypothesize that share of cross-sectional income variation … permanent and transitory income shocks. The results confirm the predictions, providing support for the importance of permanent …