The dynamics of perception: modelling subjective wellbeing in a short panel

Publication type

Journal Article


Publication date

June 1, 2008


We consider the issue of the dynamics of perceptions, as expressed in responses to survey questions on subjective wellbeing. We develop a simulated maximum likelihood method for estimation of dynamic linear models, where the dependent variable is partially observed through ordinal scales. This latent auto-regression model is often more appropriate than the usual state dependence model for attitudinal and interval variables. The paper contains an application to a model of households’ perceptions of their financial wellbeing, demonstrating the superior fit of the latent auto-regression model to both the usual static model and the state dependence model.

Published in

Journal of the Royal Statistical Society Series A (Statistics in Society)

Volume and page numbers

Volume: 171 (1):21-40 , p.21 -41




Originally 'Online Early' 19 Nov.2007

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*



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