Exploring the modern approach to the economics of happiness, which came about with the Easterlin Paradox, this book analyses and assesses the idea that as a country gets richer the happiness of its citizens remains the same. The book moves through three distinct pillars of study in the field: first analysing the historical and philosophical foundations of the debate; then the methodological and measurements issues and their political implications; and finally empirical applications and discussion about what determines a happy life. A Modern Guide to the Economics of Happiness extends the concept of happiness to that of wellbeing, offering an inquiry into well-being within the paradigm of complex systems. It draws together both recent developments in studies on the economics of happiness as well as its historical roots, covering the concept of Eudaimonia, Aristotle's theories and the important contribution of Italian economists. Critical case studies look at the relationship between physical activity and wellbeing, the value of family for life satisfaction, and the role of social capital for migrant acceptance. An invigorating read for economics and psychology scholars, this book will also be of interest to those researching welfare and development economics.

Offering a thorough assessment of recent developments in the economic literature on happiness and quality of life, this major research handbook astutely considers both methods of estimation and policy application. Luigino Bruni and Pier Luigi Porta's refreshing, and constructively critical, approach emphasizes the subject's integral impact on latter-day capitalism.Expert contributors critically present in-depth research on a wide range of topics including: - the history of the idea of quality of life and the impact of globalization - links between happiness and health - comparisons between hedonic and eudaimonic well-being - the relational and emotional side of human life, including subjective indicators of well-being - genetic and environmental contributions to life satisfaction - the impact of culture, fine arts and new media. Accessible and far-reaching, the Handbook of Research Methods and Applications in Happiness and Quality of Life will prove an invaluable resource for students and scholars of welfare and economics as well as practicing psychologists and researchers. Contributors: M. Bianchi, L. Bruni, L. Crivelli, S. Della Bella, A. Delle Fave, E. Diener, E. Granata, M. Guerini, P. Krause, B. Lopez Noval, M. Lucchini, F. Maggino, H.A. Marujo, N. Matteucci, C. Miller, J. Morozink Boylan, L.M. Neto, G. Nuvolati, A. Pelloni, P.L. Porta, M. Rojas, C.D. Ryff, A. Sen, M.J. Sirgy, L. Stanca, L. Tay, R. Veenhoven, S. Vieira Lima

Exploring the modern approach to the economics of happiness, which came about with the Easterlin Paradox, this book analyses and assesses the idea that as a country gets richer the happiness of its citizens remains the same. The book moves through three distinct pillars of study in the field: first analysing the historical and philosophical foundations of the debate; then the methodological and measurements issues and their political implications; and finally empirical applications and discussion about what determines a happy life. A Modern Guide to the Economics of Happiness extends the concept of happiness to that of wellbeing, offering an inquiry into well-being within the paradigm of complex systems. It draws together both recent developments in studies on the economics of happiness as well as its historical roots, covering the concept of Eudaimonia, Aristotle's theories and the important contribution of Italian economists. Critical case studies look at the relationship between physical activity and wellbeing, the value of family for life satisfaction, and the role of social capital for migrant acceptance. An invigorating read for economics and psychology scholars, this book will also be of interest to those researching welfare and development economics.

This book is a welcome consolidation and extension of the recent expanding debates on happiness and economics. Happiness and economics, as a new field for research, is now of pivotal interest particularly to welfare economists and psychologists. This Handbook provides an unprecedented forum for discussion of the economic issues relating to happiness. It reviews the more recent literature and offers the interested reader an insight into the vast scope of the field in terms of the theory, its applications and also experimental design. The Handbook also gives substantial indications as to the future direction of research in the field, with particular regard to policy applications and developing an economics of interpersonal relations which includes reciprocity and social interaction theory. Reflecting the contribution of a major research activity on the study of happiness, economics and interpersonal relations, this book will be of great interest to economists and psychologists in general, as well as welfare economists and postgraduate scholars of cooperation, welfare, social planning, non-profit, corporate social responsibility and related fields.

We must quickly learn how to live well in the world as it is today, including the realm of work. We need to learn a new vocabulary of economics and markets that is more suitable to understand the present world and that is likely to offer us the tools to act, and perhaps improve it as well.

The recent era of economic turbulence has generated a growing enthusiasm for an increase in new and original economic insights based around the concepts of reciprocity and social enterprise. This stimulating and thought-provoking Handbook not only encourages and supports this growth, but also emphasises and expands upon new topics and issues within the economics discourse. Original contributions from key international experts acknowledge and illustrate that markets and firms can be civilizing forces when and if they are understood as expressions of cooperation and civil virtues. They provide an illuminating discourse on a wide range of topics including reciprocity, gifts and the civil economy, which are especially relevant in times of crisis for financial capitalism. The Handbook questions the current phase of the market economy that arises from a state of anthropological pessimism. Such anthropological cynicism is one of the foundations of the contemporary economic system that is challenged by the contributors. This highly original and interdisciplinary Handbook will provide a fascinating read for academics, researchers and students across a wide range of fields including economics, public sector economics, public policy and social policy. Contributors include: R. Abramovay, H. Alford, A. Andreoni, A. Argandona, A. Barrera, L. Becchetti, N. Bellanca, E. Bortoluzzi Dubach, C. Borzaga, L. Bouckaert, S. Bowles, A. Brandolini, A. Caille, J. Davis, J. Defourny, L. Faulk, B. Frey, H. Gintis, L. Gold, B. Gui, A. Habisch, S. Hargreaves-Heap, D. Jones, P. Kalmi, E. Khalil, S. Kolm, C. Loza Adaui, J. Mercier Ythier, S. Neckermann, V. Negri, A. Offer, A. Pabst, G.R. Pearce, V. Pelligra, P.L. Porta, P.L. Sacco, L. Sacconi, A. Smerilli, A.J. Uelmen, P. Vanin, B.M. Wilson, L. Zarri, D.J. Zizzo

Values-based organizations are institutions, communities and non-governmental organizations (NGOs) which are inspired by a mission or a vocation - for these groups it is their ideals which are most important to them and economics does not have a way to incorporate that into its analysis. This book provides a short introduction to the economics of values-based organizations. The book opens with an analysis of some phenomena common to all organizations: the management of vulnerabilities in relationships and the role of incentives, especially in relation to loyalty. Turning to values-based organizations more specifically, the book explores the motivations of their members, how they retain their most motivated people, what happens when the ideals of the organization are perceived to have deteriorated, and the decisions made by those in charge, who focus on efficiency, oblivious to values and identities. The second part of the book explores the narrative dimensions of values-based organizations. "Narrative capital" is a precious resource in many of these organizations, particularly through periods of crisis and change. But problems can also be caused if the second and later generations after the foundations continue to use the original narrative without enough innovation. Finally, the book discusses the gaps - the surpluses and misalignments - between people, their ideals and the organizations and how these can be managed. The book is written for academics, students and others interested in the role of values and ideals in organizations - economists, sociologist, business scholars, theologians and philosophers.

Values-based organizations are institutions, communities and non-governmental organizations (NGOs) which are inspired by a mission or a vocation - for these groups it is their ideals which are most important to them and economics does not have a way to incorporate that into its analysis. This book provides a short introduction to the economics of values-based organizations. The book opens with an analysis of some phenomena common to all organizations: the management of vulnerabilities in relationships and the role of incentives, especially in relation to loyalty. Turning to values-based organizations more specifically, the book explores the motivations of their members, how they retain their most motivated people, what happens when the ideals of the organization are perceived to have deteriorated, and the decisions made by those in charge, who focus on efficiency, oblivious to values and identities. The second part of the book explores the narrative dimensions of values-based organizations. "Narrative capital" is a precious resource in many of these organizations, particularly through periods of crisis and change. But problems can also be caused if the second and later generations after the foundations continue to use the original narrative without enough innovation. Finally, the book discusses the gaps - the surpluses and misalignments - between people, their ideals and the organizations and how these can be managed. The book is written for academics, students and others interested in the role of values and ideals in organizations - economists, sociologist, business scholars, theologians and philosophers.

This book looks at the governance of values-based organizations (VBOs), which are organizations with a mission and identity based on ideals. Examples of VBOs include non-profit organizations, charities, NGOs, environmental, educational or cultural organizations, and social enterprises. The main objective of any VBO is to evolve and grow without losing its identity, which its survival is linked to in the medium and long terms. The focus of this book is the study of the relational and motivational dynamics during identity crisis, using critical mass models and Hirschman’s "exit and voice" framework. This book analyses the dynamics that arise in VBOs when the quality of the ideal deteriorates. On the basis of Hirschman’s "exit and voice" model, it analyses the factors that lead the best members – the intrinsically motivated ones who care most about the mission and ideals of the organization – to leave if their voice is ignored. We show that the possible cumulative effects caused by the "exit" of intrinsically motivated members can lead the organization to a process of deterioration. This book offers an analysis of these phenomena, which are usually studied in sociology or political science, by using an economic approach and the language of evolutionary game theory. By combining sociological politics and economics as a theoretical tool, we create a fresh approach to explore crises in organizations.

The recent era of economic turbulence has generated a growing enthusiasm for an increase in new and original economic insights based around the concepts of reciprocity and social enterprise. This stimulating and thought-provoking Handbook not only encourages and supports this growth, but also emphasises and expands upon new topics and issues within the economics discourse. Original contributions from key international experts acknowledge and illustrate that markets and firms can be civilizing forces when and if they are understood as expressions of cooperation and civil virtues. They provide an illuminating discourse on a wide range of topics including reciprocity, gifts and the civil economy, which are especially relevant in times of crisis for financial capitalism. The Handbook questions the current phase of the market economy that arises from a state of anthropological pessimism. Such anthropological cynicism is one of the foundations of the contemporary economic system that is challenged by the contributors. This highly original and interdisciplinary Handbook will provide a fascinating read for academics, researchers and students across a wide range of fields including economics, public sector economics, public policy and social policy. Contributors include: R. Abramovay, H. Alford, A. Andreoni, A. Argandona, A. Barrera, L. Becchetti, N. Bellanca, E. Bortoluzzi Dubach, C. Borzaga, L. Bouckaert, S. Bowles, A. Brandolini, A. Caille, J. Davis, J. Defourny, L. Faulk, B. Frey, H. Gintis, L. Gold, B. Gui, A. Habisch, S. Hargreaves-Heap, D. Jones, P. Kalmi, E. Khalil, S. Kolm, C. Loza Adaui, J. Mercier Ythier, S. Neckermann, V. Negri, A. Offer, A. Pabst, G.R. Pearce, V. Pelligra, P.L. Porta, P.L. Sacco, L. Sacconi, A. Smerilli, A.J. Uelmen, P. Vanin, B.M. Wilson, L. Zarri, D.J. Zizzo

Max Weber laid the foundations for the meaning of 'charisma' in modern secular usage. This new volume argues for the importance of the 'charismatic principle' in history, economics and society. This volume brings together a number of contributors at the cross section between economics, theology, sociology and politics in order to set a research agenda for the following issues: What does it means to have a 'charism'? How does it work in society? How might one distinguish a 'charism' from a talent? Are 'charism's given only to "special" people, or are they also present in ordinary people? Is a 'charism' necessarily associated with religion, or, is it, as we submit, possible to imagine 'charisms' at work within a secular perspective? Which are the principle perspectives of the role of 'charisms' in social history? How have the 'charisms' of noted personalities (e.g., Benedict, Francis, Gandhi) changed economic and social history? What insights might be drawn from 'civil charisms' such as the cooperative movement, non-profit organizations, social economy, and values-based organizations? This book seeks to answer these questions through the employment of an interdisciplinary perspective, which examines the theme of the charismatic principle in social life in different fields of application.

The main emphasis of this new book from Luigino Bruni is a praise of heterogeneity, arguing that society works when different people are able to cooperate in many different ways. The author engages in a novel approach to reciprocity looking at its different forms in society, from cautious or contractual interactions, to the reciprocity of friendship to unconditional behaviour.

Bruni'ss historical-methodological analysis of reciprocity is a way of examining the interface between political economy and the issue of sociality, generally characterized by 'two hundred years of solitude' of the homo economicus. This historical analysis exposes an absence and this book looks at the reasons why among the many forms of reciprocity present in the civil life economics has chosen to deal just with the simplest ones (contracts and repeated self-interested interactions). The second part of the book is an analysis (with repeated and evolutionary games) of the interactions of the three forms of reciprocity faced with a forth strategy; the non-reciprocity.

Pareto's Manual of Political Economy, first published in 1905, introduced the analytical approach which has characterised a significant part of twentieth century economic theory. In particular, the Manual examined the ordinal representation of the individual choice, the issue of the general economic equilibrium and the Pareto optimality criterion for evaluating economic efficiency. The Manual also contained analyses of production, non-linear prices, non-competitive markets and the competition process, which have not yet been fully developed in modern mainstream economics.

Based on Pareto's groundbreaking 'Manuale di Economia Politica', this edited collection brings together a selection of essays from some of the most authoritative scholars of Pareto, who discuss the relevance of Pareto's economics in the context of the present theoretical debate.

Economists have long laboured under the misapprehension that all humans exist as rational beings that find happiness in maximizing their personal utility. This impressive volume presents an historical review of the evolution of economic thought, from economic philosophy to contemporary mathematical economics, and its critique of how the human and social dimensions of economics have been lost in this evolutionary process.

Examining the crucial period in the late eighteenth century when economists such Smith and Genovesi tried to reconcile the classical tradition of Civil humanism emerging commercial society, this key book analyses the impact that the hedonist approach to economics had in removing the ethical conception of happiness. In addition, it focuses on the impact that J.S. Mill, Wicksteed and Pareto had in shifting methodological thinking away from an emphasis on civil happiness. Simply put, this book is essential reading for economists everywhere.

The main emphasis of this new book from Luigino Bruni is a praise of heterogeneity, arguing that society works when different people are able to cooperate in many different ways. The author engages in a novel approach to reciprocity looking at its different forms in society, from cautious or contractual interactions, to the reciprocity of friendship to unconditional behaviour. Bruni'ss historical-methodological analysis of reciprocity is a way of examining the interface between political economy and the issue of sociality, generally characterized by 'two hundred years of solitude' of the homo economicus. This historical analysis exposes an absence and this book looks at the reasons why among the many forms of reciprocity present in the civil life economics has chosen to deal just with the simplest ones (contracts and repeated self-interested interactions). The second part of the book is an analysis (with repeated and evolutionary games) of the interactions of the three forms of reciprocity faced with a forth strategy; the non-reciprocity.

This volume has a double purpose. First of all, it follows an Italian tradition of thought that began in the 15th and 16th centuries as Civic Humanism and continued up until the golden period of Italian Enlightenment as represented by the Schools of Milan and Naples. Its main contribution to the history of economic thought is its conception of the market as a place centered on the principle of reciprocity and civil virtues. This book explains why the civil approach to economics disappeared from cultural debates, scientific enquiries and the public arena at the end of the 18th century, only to surface again in more recent times. Secondly, the book draws attention to a new reading of the whole of economic reality. Indeed, the civil economy in one sense is mainly a cultural perspective from which it is possible to interpret the entire economic discourse. If a theory is considered as substantially a point of view on reality, then this cultural perspective can also set the basis for a diverse economic theory. Where does the key element of such diversity lie? It lies in the attempt to integrate within the economic system the three basic principles of any social order: the principle of exchange of equivalents, the principle of redistribution and the principle of reciprocity. Though this book draws on the history of economic ideas, it focuses on the present day from an ancient perspective in order to find convincing answers to the new questions arising in the era of globalization.

Economists have long laboured under the misapprehension that all humans exist as rational beings that find happiness in maximizing their personal utility. This impressive volume presents an historical review of the evolution of economic thought, from economic philosophy to contemporary mathematical economics, and its critique of how the human and social dimensions of economics have been lost in this evolutionary process.

Examining the crucial period in the late eighteenth century when economists such Smith and Genovesi tried to reconcile the classical tradition of Civil humanism emerging commercial society, this key book analyses the impact that the hedonist approach to economics had in removing the ethical conception of happiness. In addition, it focuses on the impact that J.S. Mill, Wicksteed and Pareto had in shifting methodological thinking away from an emphasis on civil happiness. Simply put, this book is essential reading for economists everywhere.

There has been a recent resurgence of interest in the work of Vilfredo Pareto, one of the founders of modern economics. This book reconstructs the genesis and significance of Pareto's theory of choice which is Pareto's greatest contribution to economic science and which was used by John Hicks, amongst others, to develop microeconomics. Hicks, Allen, Samuelson and others acknowledged Pareto as the father of the new ordinalist microeconomics but at the same time, portrayed him as confused and contradictory, caught between the old and new paradigms. Luigino Bruni argues that Pareto's revolution in choice theory is better understood in the context of his own philosophical framework. This framework is revealed by reconstructing his dialogues with economists (Pantaleoni) and philosophers (Vailati and Croce), and by exploring Pareto's economic theory in the light of his philosophy of science. In addition, Luigino Bruni argues that Pareto's contribution was different and more complex than Hicks's ordinalism and Samuelson's operationalism. From this analysis emerges an image of Pareto as a man whose ideas and work was only partially fulfilled. This original and sometimes unconventional book will be of great interest to economists, historians of economic thought and philosophers of the social sciences.

This book looks at the governance of values-based organizations (VBOs), which are organizations with a mission and identity based on ideals. Examples of VBOs include non-profit organizations, charities, NGOs, environmental, educational or cultural organizations, and social enterprises. The main objective of any VBO is to evolve and grow without losing its identity, which its survival is linked to in the medium and long terms. The focus of this book is the study of the relational and motivational dynamics during identity crisis, using critical mass models and Hirschman's "exit and voice" framework. This book analyses the dynamics that arise in VBOs when the quality of the ideal deteriorates. On the basis of Hirschman's "exit and voice" model, it analyses the factors that lead the best members - the intrinsically motivated ones who care most about the mission and ideals of the organization - to leave if their voice is ignored. We show that the possible cumulative effects caused by the "exit" of intrinsically motivated members can lead the organization to a process of deterioration. This book offers an analysis of these phenomena, which are usually studied in sociology or political science, by using an economic approach and the language of evolutionary game theory. By combining sociological politics and economics as a theoretical tool, we create a fresh approach to explore crises in organizations.

Pareto's Manual of Political Economy, first published in 1905, introduced the analytical approach which has characterised a significant part of twentieth century economic theory. In particular, the Manual examined the ordinal representation of the individual choice, the issue of the general economic equilibrium and the Pareto optimality criterion for evaluating economic efficiency. The Manual also contained analyses of production, non-linear prices, non-competitive markets and the competition process, which have not yet been fully developed in modern mainstream economics.

Based on Pareto s groundbreaking Manuale di Economia Politica, this edited collection brings together a selection of essays from some of the most authoritative scholars of Pareto, who discuss the relevance of Pareto s economics in the context of the present theoretical debate. "

Few would dispute that the well-being of individuals is one of the most desirable aims of human actions. However, approaches on how to define, measure, evaluate, and promote well-being differ widely. The conventional economic approach takes income (or the power to acquire market goods) as the most important indicator for well-being, and the utility function as the formal device for positive and normative analysis. However, this approach to well-being has been questioned for being seriously limited and other approaches have arisen.
The capability approach to well-being, which has been developed during the last two decades by Amartya Sen and Martha Nussbaum, and the Happiness Approach to well-being, championed by Richard Easterlin, both provide an alternative. Both approaches come from different traditions and have developed independently, but nevertheless aim to overcome the rigid boundaries of the conventional economic approach to well-being. Given these common aims, it is surprising that little comparative work has been undertaken across these approaches. This book aims to correct this by providing the reader with contributions from leading names associated with both approaches, as well as contributions which evaluate the approaches and contrast one with the other.

Brunis historisch-methodologische Analyse von Reziprozitat wendet sich gegen die herrschende Meinung in den Wirtschaftswissenschaften, die sich - dem Menschenbild des 'homo oeconomicus' folgend - einzig mit den beiden einfachsten Formen von Reziprozitat, namlich vertraglicher Zusammenarbeit sowie eigennutzigen Handlungen, befassen und alle anderen Formen ausblenden. Der Verfasser analysiert soziale Interaktionen in den drei unterschiedlichen Weisen von Reziprozitat, die allesamt schliesslich einer vierten Strategie gegenubergestellt werden: namlich der grundsatzlichen Verweigerung von Reziprozitat. Brunis Buch ist langst zu einem anerkannten Grundlagenwerk geworden und von Interesse fur alle, die sich mit dem Zusammenspiel von Wirtschaft und Gesellschaft, dem Charakter von Reziprozitat, der Struktur sozialer Interaktionen und der Methodologie evolutionarer Spieltheorie befassen. Es vermittelt grundlegende, weiterfuhrende Einsichten uber die Regeln, denen gesellschaftliches Zusammenleben folgt.

This book is the first of its kind to provide a comprehensive overview of happiness in Economics. Although it is comparatively unusual to put happiness and economics together, the association appears increasingly exciting and fruitful. A number of studies have been produced following Richard Easterlins and Tibor Scitovskys pioneering works throughout the 1970s. The essays collected in this book provide an authoritative and comprehensive assessment both theoretical, applied and partly experimental of the whole field moving from the so-called paradoxes of happiness in Economics. The book breaks new ground, particularly on the more recent directions of research on happiness, well-being, interpersonal relations and reciprocity. The meaning of happiness is thoroughly explored and the tension between a hedonic-subjective idea of happiness and a eudaimonic-objective one is discussed. This volume opens with Richard Easterlins own assessment of the main issues. Other authors include Robert H. Frank, Robert Sugden, Bruno S. Frey, Alois Stutzer, Richard Layard, Martha C. Nussbaum, Matt Matravers, Bernard M.S, van Praag, Oded Stark, You Q. Wang, Ruut Veenhoven, Charlotte Phelps, Stefano Zamagni, and Luigi Pasinetti.

Max Weber laid the foundations for the meaning of 'charisma' in modern secular usage. This new volume argues for the importance of the 'charismatic principle' in history, economics and society. This volume brings together a number of contributors at the cross section between economics, theology, sociology and politics in order to set a research agenda for the following issues: What does it means to have a 'charism'? How does it work in society? How might one distinguish a 'charism' from a talent? Are 'charism's given only to "special" people, or are they also present in ordinary people? Is a 'charism' necessarily associated with religion, or, is it, as we submit, possible to imagine 'charisms' at work within a secular perspective? Which are the principle perspectives of the role of 'charisms' in social history? How have the 'charisms' of noted personalities (e.g., Benedict, Francis, Gandhi) changed economic and social history? What insights might be drawn from 'civil charisms' such as the cooperative movement, non-profit organizations, social economy, and values-based organizations? This book seeks to answer these questions through the employment of an interdisciplinary perspective, which examines the theme of the charismatic principle in social life in different fields of application.

Global financial capitalism has eroded the moral economy on which all economic exchanges ultimately depend. The principles of reciprocity, responsibility and redistribution, which for centuries defined the market place, have been increasingly pushed aside by a growth model that places the pursuit of profit above all else. Luigino Bruni and Stefano Zamagni draw on a rich Italian tradition of civic humanism to advocate a more well-mannered type of economic market a civil economy one that places well-being, virtue and the common good alongside more familiar economic goals. They provide a succinct introduction to the civil economy approach and outline the thought and ideas of some of its pioneers and main representatives. The many different fields of application of the civil economy, from the determination of gross domestic product to the management of common goods, from welfare to the organization of production and consumption, are considered. Unlike many post-growth or degrowth movements, rather than seek to replace the market, civil economy seeks to find solutions to social problems within the market, while maximizing human values and minimizing government intervention. It is a distinct and valuable approach, and one that offers individuals, corporations and governments a framework for a humane and socially accountable, yet productive and competitive, system of markets.