Abstract
The intention of the study was to test between two causal models of relationships between happiness and five of its correlates (i.e., housing satisfaction, financial satisfaction, perceived health, locus of control, and activity level). In Model 1, happiness was identified as a propensity variable that is a source of influence on the lower order correlates. Model 2 is a traditional formulation whereby levels of happiness are determined by its correlates. The models were tested by causal modeling procedures, using 18-month longitudinal data from 408 elderly subjects. The findings support Model 1 over Model 2 for 17/18 predictions that differentiated the models. The status of happiness as a trait was discussed with reference to: (a) the type of items included in the happiness scale; and (b) relationships with variables not included in the research.

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