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Happiness Economics deals with the concept of happiness in
economics. Most economists until recently were very suspicious
about happiness economics and the common opinion was that happiness
is not empirically measurable. Actually there is now a growing body
of serious economists who are willing, either reluctantly or
wholeheartedly, to include happiness economics as a part of
economic science. For a better understanding of happiness
economics, the authors examine the viewpoint of mainstream
economics in the introduction. Section 2 starts by considering the
methods of analysis in happiness economics. Section 3 considers
life satisfaction (or happiness), Section 4 considers domain
satisfactions, Section 5 returns to the ordinality-cardinality
question, and Section 6 provides the link between domain
satisfactions and satisfaction with life as a whole. Section 7
considers the work of the Leyden school that may be seen as a
forerunner of modern happiness economics. Section 8 considers the
effect of the individual's reference group on her or his happiness.
Section 9 examines the influence of past events and the anticipated
future on present life satisfaction. Section 10 deals with the
effect of climate and more generally of the external environment on
satisfaction. Section 11 considers the effect of inequality on
individual happiness and considers happiness inequality per se.
Section 12 considers how the vignette approach, so popular in
marketing, can be applied in happiness economics. Section 13
delineates the significance of happiness economics for normative
economics. And Section 14 draws some conclusions and discusses the
relevance of the new findings for economic science and the social
sciences in general.
How do we measure happiness? Focusing on subjective measures as a
proxy for welfare and well-being, this book finds ways to do that.
Subjective measures have been used by psychologists, sociologists,
political scientists, and, more recently, economists to answer a
variety of scientifically and politically relevant questions. Van
Praag, a pioneer in this field since 1971, and Ferrer-i-Carbonell
present in this book a generally applicable methodology for the
analysis of subjective satisfaction. Drawing on a range of surveys
on people's satisfaction with their jobs, income, housing,
marriages, and government policy, among other areas of life, this
book shows how satisfaction with life "as a whole" is an aggregate
of these domain satisfactions. Using German, British, Dutch, and
Russian data, the authors cover a wide range of topics. This
groundbreaking book presents a new and fruitful methodology that
constitutes a welcome addition to the social sciences. The
paperback edition has been revised to bring the literature review
up-to-date and the chapter on poverty has been revised and extended
to take account of new research.
How do we measure happiness? Focusing on subjective measures as a
proxy for welfare and well-being, this book finds ways to do that.
Subjective measures have been used by psychologists, sociologists,
political scientists, and, more recently, economists to answer a
variety of scientifically and politically relevant questions. Van
Praag, a pioneer in this field since 1971, and Ferrer-i-Carbonell
present in this book a generally applicable methodology for the
analysis of subjective satisfaction. Drawing on a range of surveys
on people's satisfaction with their jobs, income, housing,
marriages, and government policy, among other areas of life, this
book shows how satisfaction with life "as a whole" is an aggregate
of these domain satisfactions. Using German, British, Dutch, and
Russian data, the authors cover a wide range of topics, even some
not usually considered part of economic study. The book makes a
distinction between actual satisfaction levels and individual
norms, and in this way complements Van Praag's earlier work within
the Leyden School with his later work in "happiness research".
Among the many topics covered, the authors discuss: individuals'
memory and anticipation processes and the estimation of adaptation
phenomena (how individuals adapt to changing circumstances); the
effect of reference groups on income norms and satisfaction with
income; the importance of climate for well-being, including the
development of a climate-equivalence index; the trade-offs between
chronic diseases and income when well-being is kept constant; the
damage of aircraft noise on well-being; the construction of a new
talent tax tariff; and inequality from a satisfaction perspective,
including the definition of "satisfaction inequalities", a natural
extension of income inequality and poverty. This groundbreaking
book presents new and fruitful methodology that consitutes a
welcome addition to the social sciences.
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