Have an ordinal dependent variable? Use this robustness test.
Ordinal variables are everywhere. Data providing information about happiness, levels of customer satisfaction, employees’ satisfaction, mental stress, psychological well-being, societal trust, and other important variables are now regularly collected and analyzed by national governments, large multinational companies, and researchers. However, because these data are not directly observable or quantitatively measurable, they are thus not measured…
Lotteries and Life Satisfaction – A Comment on the Cardinal Treatment of Ordinal Variables
A long standing belief, held by many, is that winning the lottery actually makes people miserable. This belief is backed up by existing research in psychology finding that lottery winners were no more satisfied with their life than people who did not win the lottery. New research suggests this belief might be wrong.
Book Review: “Nudge”
I recently finished reading a fascinating book entitled Nudge: Improving Decisions About Health, Wealth, and Happiness. The most basic idea behind the book is everything matters. Humans are constantly influenced unconsciously by seemingly trivial details. Put simply we are always being “nudged”. This book aims to harness the ways humans are nudged and use “choice architecture” in increase our quality of…