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Developments in the Measurement of Subjective Well-Being

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Author Info
Daniel Kahneman
Alan B. Krueger

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Abstract

Direct reports of subjective well-being may have a useful role in the measurement of consumer preferences and social welfare, if they can be done in a credible way. Can well-being be measured by a subjective survey, even approximately? In this paper, we discuss research on how individuals' responses to subjective well-being questions vary with their circumstances and other factors. We will argue that it is fruitful to distinguish among different conceptions of utility rather than presume to measure a single, unifying concept that motivates all human choices and registers all relevant feelings and experiences. While various measures of well being are useful for some purposes, it is important to recognize that subjective well-being measures features of individuals' perceptions of their experiences, not their utility as economists typically conceive of it. Those perceptions are a more accurate gauge of actual feelings if they are reported closer to the time of, and in direct reference to, the actual experience. We conclude by proposing the U- index, a misery index of sorts, which measures the proportion of time that people spend in an unpleasant state, and has the virtue of not requiring a cardinal conception of individuals' feelings.

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File URL: http://www.aeaweb.org/articles/issue_detail.php?journal=JEP&volume=20&issue=1&issue_date=Winter%202006
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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 20 (2006)
Issue (Month): 1 (Winter)
Pages: 3-24
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Handle: RePEc:aea:jecper:v:20:y:2006:i:1:p:3-24

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  1. Alan B. Krueger & David A. Schkade, 2007. "The Reliability of Subjective Well-Being Measures," IZA Discussion Papers 2724, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Jose Ignacio Gimenez Nadal & Almudena Sevilla Sanz, 2007. "A Note on Leisure Inequality in the US: 1965-2003," Economics Series Working Papers 374, University of Oxford, Department of Economics. [Downloadable!]
  3. Lelkes, Orsolya, 2008. "Happiness over the life cycle: exploring age-specific preferences," MPRA Paper 7302, University Library of Munich, Germany. [Downloadable!]
  4. Titiunik, Rocio & Martinez, Sebastian & Gertler, Paul J. & Galiano, Sebastian & Cattaneo, Matias D., 2007. "Housing, health, and happiness," Policy Research Working Paper Series 4214, The World Bank. [Downloadable!]
  5. Claudia Biancotti & Giovanni D'Alessio, 2008. "Values, inequality and happiness," Temi di discussione (Economic working papers) 669, Bank of Italy, Economic Research Department. [Downloadable!]
  6. Richard A. Easterlin & Laura Angelescu, 2007. "Modern Economic Growth and Quality of Life: Cross Sectional and Time Series Evidence," IZA Discussion Papers 2755, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Isacsson, Gunnar & Swärdh, Jan-Erik, 2007. "An empirical on-the-job search model with preferences for relative earnings: How high is the value of commuting time?," Working Papers 2007:12, Swedish National Road & Transport Research Institute (VTI). [Downloadable!]
  8. Svensson, Mikael, 2006. "Don’t Go Breaking your Heart: Do Economic Upturns Really Increase Heart Attack Mortality?," Working Papers 2006:8, Örebro University, Swedish Business School, revised 01 Nov 2006.
  9. Andrew E. Clark & Claudia Senik, 2007. "La croissance rend-elle heureux ? La réponse des données subjectives," PSE Working Papers 2007-06, PSE (Ecole normale supérieure). [Downloadable!]
  10. Esa Mangeloja & Tatu Hirvonen, 2007. "What Makes University Students Happy?," International Review of Economic Education, Economics Network, University of Bristol, vol. 6(2), pages 27-41. [Downloadable!]
  11. Calvo, Esteban & Haverstick, Kelly & Sass, Steven, 2007. "What Makes Retirees Happier: A Gradual or 'Cold Turkey' Retirement?," MPRA Paper 5607, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  12. Andrew Kashdan and Daniel B. Klein, 2006. "Assume the Positional: Comment on Robert Frank," Econ Journal Watch, Atlas Economic Research Foundation, vol. 3(3), pages 412-434, September. [Downloadable!]
  13. Simone Borghesi & Alessandro Vercelli, 2007. "Happiness and health: two paradoxes," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0108, Department of Economic Policy, Finance and Development (DEPFID), University of Siena. [Downloadable!]
  14. Rafael Di Tella & Robert MacCulloch, 2007. "Happiness, Contentment and Other Emotions for Central Banks," NBER Working Papers 13622, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Easterlin, Richard A., 2008. "Lost in Transition: Life Satisfaction on the Road to Capitalism," IZA Discussion Papers 3409, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Guglielmo Maria Caporale & Yannis Georgellis & Nicholas Tsitsianis & Ya Ping Yin, 2007. "Income and Happiness across Europe: Do Reference Values Matter?," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  17. Claudia Biancotti & Giovanni D'Alessio, 2007. "Inequality and Happiness," Working Papers 75, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  18. Dennis Görlich & Christoph Trebesch, 2008. "Seasonal Migration and Networks—Evidence on Moldova’s Labour Exodus," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(1), pages 107-133, April. [Downloadable!] (restricted)
  19. Claudia Senik, 2007. "Direct Evidence on Income Comparisons and their Welfare Effects," IZA Discussion Papers 3195, Institute for the Study of Labor (IZA). [Downloadable!]
  20. Claudia Senik, 2007. "Income Comparisons. Which Income Gaps Matter Most to People?," PSE Working Papers 2007-19, PSE (Ecole normale supérieure). [Downloadable!]
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