What is the Impact of Financial Shock on Reaching Happiness Frontier?

E. C. Mamatzakis (University of Sussex Business School)
Christos Staikouras (Athens University of Economics and Business)


This paper provides a framework to reveal happiness frontier based on British Household Panel Survey. Thereafter we focus on what is the impact of financial shock on reaching the frontier. By doing so we also explore the nexus between personality traits, such as extraversion, neuroticism, and openness, and the financial shock. We further reveal the underlying causality threads.


Personality; Happiness efficiency; Financial shock;

Full Text:



Binder, M., T. Broekel. Applying a non‐parametric efficiency analysis to measure conversion efficiency in Great Britain. Journal of Human Development and Capabilities, 2011 12: 257-281.

Cheng, H., A. Furnham. Personality, self-esteem, and demographic predictions of happiness and depression. Personality and individual differences, 2003, 34: 921-942.

Clark, A.E., N. Westergård-Nielsen, N. Kristensen. Economic satisfaction and income rank in small neighbourhoods. Journal of the European Economic Association, 2009: 519-527.

Di Tella, R., J. Haisken-De New, R. MacCulloch. Happiness adaptation to income and to status in an individual panel. Journal of Economic Behavior & Organization, 2010, 76: 834-852.

Diener, E., M.E. Seligman. Very happy people. Psychological science, 2002, 13: 81-84.

Hayes, N., S. Joseph. Big 5 correlates of three measures of subjective well-being. Personality and Individual differences, 2003, 34: 723-727.

Lyubomirsky, S., L. King, E. Diener. The benefits of frequent positive affect: does happiness lead to success? Psychological bulletin, 2005, 131: 803.

McCrae, R.R., P.T. Costa. Adding Liebe und Arbeit: The full five-factor model and well-being. Personality and social psychology bulletin, 1991, 17: 227-232.

Rayo, L., G.S. Becker. Evolutionary efficiency and happiness. Journal of Political Economy, 2007, 115: 302-337.

Steel, P., J. Schmidt, J. Shultz. Refining the relationship between personality and subjective well-being. Psychological bulletin, 2008, 134: 138.

Weber, M., E.S. Huebner. Early adolescents’ personality and life satisfaction: A closer look at global vs. domain-specific satisfaction. Personality and Individual Differences, 2015, 83: 31-36.

DOI: https://doi.org/10.30564/mmpp.v1i1.533


  • There are currently no refbacks.
Copyright © 2019 Christos Staikouras Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.