Title: How does housing wealth affect happiness?
Abstract:This study estimates the causal effect of housing wealth appreciation on happiness by exploiting a policy-induced discontinuity in housing value based on house size. Using regression discontinuity analysis of nationally representative household survey data, we find that housing wealth appreciation significantly improves individual happiness. We also find the impact is more pronounced among females, stronger for young households than older ones, and more significant for liquidity-constrained households. These findings highlight housing wealth as a key determinant of happiness, offering important insights for policymakers seeking to improve citizen well-being through housing market policies.
Keywords: Housing wealth;Happiness;Regression discontinuity;China
DOI:https://doi.org/10.1016/j.ememar.2025.101406
