Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach

We explore the determinants of financial satisfaction using a modelling framework which allows the drivers of financial satisfaction to vary across life stages. Given that financial satisfaction is measured as an ordered variable, our modelling approach is based on a latent class ordered probit mode...

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Main Authors: Brown, S., Durand, Robert, Harris, Mark, Weterings, T.
Format: Journal Article
Published: Elsevier 2014
Subjects:
Online Access:http://purl.org/au-research/grants/arc/DP110101426
http://hdl.handle.net/20.500.11937/18280
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author Brown, S.
Durand, Robert
Harris, Mark
Weterings, T.
author_facet Brown, S.
Durand, Robert
Harris, Mark
Weterings, T.
author_sort Brown, S.
building Curtin Institutional Repository
collection Online Access
description We explore the determinants of financial satisfaction using a modelling framework which allows the drivers of financial satisfaction to vary across life stages. Given that financial satisfaction is measured as an ordered variable, our modelling approach is based on a latent class ordered probit model with an ordered probit class assignment function. Our analysis of household survey data indicates that four life stages are supported by the data. Our results suggest that such flexibility is important in understanding the drivers of financial satisfaction over the life cycle since there is a substantial amount of parameter heterogeneity across the four classes.
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institution Curtin University Malaysia
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last_indexed 2025-11-14T07:25:05Z
publishDate 2014
publisher Elsevier
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spelling curtin-20.500.11937-182802019-10-31T05:50:06Z Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach Brown, S. Durand, Robert Harris, Mark Weterings, T. Ordered probit Life cycle Latent class Financial satisfaction We explore the determinants of financial satisfaction using a modelling framework which allows the drivers of financial satisfaction to vary across life stages. Given that financial satisfaction is measured as an ordered variable, our modelling approach is based on a latent class ordered probit model with an ordered probit class assignment function. Our analysis of household survey data indicates that four life stages are supported by the data. Our results suggest that such flexibility is important in understanding the drivers of financial satisfaction over the life cycle since there is a substantial amount of parameter heterogeneity across the four classes. 2014 Journal Article http://hdl.handle.net/20.500.11937/18280 10.1016/j.joep.2014.09.001 http://purl.org/au-research/grants/arc/DP110101426 http://purl.org/au-research/grants/arc/DP140100748 Elsevier fulltext
spellingShingle Ordered probit
Life cycle
Latent class
Financial satisfaction
Brown, S.
Durand, Robert
Harris, Mark
Weterings, T.
Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title_full Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title_fullStr Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title_full_unstemmed Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title_short Modelling Financial Satisfaction Across Life Stages: A Latent Class Approach
title_sort modelling financial satisfaction across life stages: a latent class approach
topic Ordered probit
Life cycle
Latent class
Financial satisfaction
url http://purl.org/au-research/grants/arc/DP110101426
http://purl.org/au-research/grants/arc/DP110101426
http://hdl.handle.net/20.500.11937/18280