Unifying livability and comparison theory: Cross-national time-series analysis of life-satisfaction

The two major theories of QOL judgment - livability and comparison theories - are tested. The first states that only absolute level of objective varia bles will affect QOL, whereas the second states that only differences in ob jective variables will. A 25-year, 8-nation database was developed that all ows more powerful tests than previous research. Consistent with previous st udies and with livability theory, absolute level of GDP/person had the larg est effect on life-satisfaction. Contrary to previous research, a reliable effect was also found for differences in GDP/person and the consumer price index. The length of these effects is 9 or 10 quarters. That is, consumers take into account changes as far back as 2 or 2 1/2 years, in addition to t heir absolute level of GDP/person.