This paper models the relationship between income and reported well-being using latent class techniques applied to panel data from twelve European countries. Introducing both intercept and slope heterogeneity into this relationship, we strongly reject the hypothesis that individuals transform...

"Likert scales" are the most standard and widespread instrument in survey research when measuring public opinion on political and economic issues. In this simple approach, respondents are given the opportunity to voice their agreement or disagreement on a set of issues by placing their attitudes...