This paper contributes to the literature on subjective well-being (SWB) by taking into account different aspects of life, called domains, such as health, financial situation, job, leisure, housing, and environment. We postulate a two-layer model where individual total SWB depends on the different subjective domain satisfactions. A distinction is made between long-term and short-term effects. The individual domain satisfactions depend on objectively measurable variables, such as income. The model is estimated using a large German panel data set.
Van Praag, B. M., Frijters, P., &Ferrer-i-Carbonell, A. (2003). The anatomy of subjective well-being. Journal of Economic Behavior &Organization, 51(1), 29-49.