  This paper aims to enhance our understanding of substantive questions
regarding self-reported happiness and well-being through the specification and
use of multi-level models. To date, there have been numerous quantitative
research studies of the happiness of individuals, based on single-level
regression models, where typically a happiness index is related to a set of
explanatory variables. There are also several single-level studies comparing
aggregate happiness levels between countries. Nevertheless, there have been
very few studies that attempt to simultaneously take into account variations in
happiness and well-being at several different levels, such as individual,
household, and area. Here, multilevel models are used with data from the
British Household Panel Survey to assess the nature and extent of variations in
happiness and well-being to determine the relative importance of the area
(district, region), household and individual characteristics on these outcomes.
Moreover, having taken into account the characteristics at these different
levels in the multilevel models, the paper shows how it is possible to identify
any areas that are associated with especially positive or negative feelings of
happiness and well-being.
