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.

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The Cardinal Treatment of Ordinal Variables

Last weekend, I came across a paper published in the European Economic Review by Carsten Schroder and Shlomo Yitzhaki entitled “Revising the Evidence for Cardinal Treatment of Ordinal Variables” (2017). I found the paper to be well-written, intuitive, and important. Although there are no direct policy implications of this paper, papers like these need to be publicized, for the sake of all research that does aim to provide meaningful implications for the world.

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