Headey, B, Veenhoven, R, and Wearing, A
Social Indicators Research, 1991, vol. 24, pp.81-100
ABSTRACT
This paper addresses issues of causal direction in research
on subjective well being (SWB). Previous researchers have generally assumed that such
variables as domain satisfactions, social support, life events, and levels of expectation
and aspiration are causes of SWB. Critics have pointed out that they could just as well be
consequences (Costa and McCrae, 1980, Veenhoven, 1988). In some contexts this has been
referred to as the top-down versus bottom-up controversy (Diener, 1984). The main purpose
is to propose a general statistical model which holds promise of resolving this
controversy. The model can be used when three or more waves of panel data are available.
It is used here to assess causal direction between six domain satisfactions (marriage,
work, leisure, standard of living, friendship and health) and SWB. Data are drawn from
four waves of an Australian Quality of Life panel survey (1981-1987) with an initial
sample size of 942.