Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/33668
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Life satisfaction and austerity: Expectations and the macroeconomy
Author(s): Brown, Sarah
Kontonikas, Alexandros
Montagnoli, Alberto
Moro, Mirko
Onnis, Luisanna
Contact Email: mirko.moro@stir.ac.uk
Keywords: Economic expectations
Fiscal austerity
Life satisfaction
Macroeconomic environment
Issue Date: Dec-2021
Date Deposited: 25-Nov-2021
Citation: Brown S, Kontonikas A, Montagnoli A, Moro M & Onnis L (2021) Life satisfaction and austerity: Expectations and the macroeconomy. Journal of Behavioral and Experimental Economics, 95, Art. No.: 101780. https://doi.org/10.1016/j.socec.2021.101780
Abstract: We examine the linkages between fiscal austerity and life satisfaction across twelve European countries using a sample of repeated cross-sections of individuals from 1999 to 2014. Austerity policies may trigger several responses at both the macro and micro-level, which in turn may affect life satisfaction directly or indirectly. We employ mediation analysis to account for these complex relationships linking austerity to an individual’s life satisfaction, their economic expectations and their likelihood of unemployment. We find that austerity policies primarily affect individual life satisfaction via the economic expectations channel. Austerity dampens optimism about the future and this response has a negative effect on life satisfaction across a range of measures of economic expectations. In addition, our results suggest that changes in government expenditure, as opposed to taxation, matter for life satisfaction.
DOI Link: 10.1016/j.socec.2021.101780
Rights: This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study. Accepted refereed manuscript of: Brown S, Kontonikas A, Montagnoli A, Moro M & Onnis L (2021) Life satisfaction and austerity: Expectations and the macroeconomy. Journal of Behavioral and Experimental Economics, 95, Art. No.: 101780. https://doi.org/10.1016/j.socec.2021.101780 © 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Licence URL(s): http://creativecommons.org/licenses/by-nc-nd/4.0/

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