Econometric Investigation of The Determinants of Well-being Through Empirical Analysis

Abstract

Utility functions serve as a prevalent basis for the theory of maximisation in the field of microeconomics. Consequently, conducting empirical research on life satisfaction offers a robust means of assessing the applicability of this theory. Through the utilisation of data derived from the UK Household Longitudinal Survey, an empirical examination may be undertaken to explore the factors influencing happiness, employing econometric techniques. This analysis aims to identify certain demographic groups that may require supplementary assistance. By employing linear and non-linear probability models, our analysis reveals that maintaining good health significantly contributes to the likelihood of experiencing contentment, but the influence of wealth on this probability may be less substantial than initially anticipated.