Modelling the Influence of Durable Goods Possession on Subjective Wellbeing of Households

Abstract

The purpose of this study is to indicate new developments in households' subjective wellbeing perception. Typology of households is determined depending on their endowment with durables. The determinants of subjective wellbeing include material, financial and immaterial factors, which all are elements of quality of life. Crucial material wealth factors influencing the perceived wellbeing level are the type of households, possession of the house, principal place of residence and a car. New phenomena that aroused at the end of the second decade of the 21st century, circular and sharing economy elements are appreciated as an innovative, additional source of households' wellbeing perception. The analytical econometric tool used here is the multinomial logit model with unordered categories. The typology of households is constructed, depending on their material wealth. There exists a substantial share of households claiming they are not interested in possession of analysed goods. It is considered a proxy measure of a percentage of a new type of families whose decisions are based on circular- and sharing-economy attitude. The analysis for selected material goods indicated influence potency of crucial factors on households' situation. The strength of the impact of individual characteristics was measured. The findings may be important policy design factor.