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Economic Growth And Social Welfare: The Need For A Complete Study Of Happiness

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  • Yew‐Kwang Ng*

Abstract

Does economic growth increase social welfare (happiness)? Answers to such questions can only be provided by a complete analysis of all the objective, subjective, and institutional effects. All measures originate from the subjective world, working through the institutional setting to affect the objective world, the institutional setting and/or the subjective world. Due to the increasing complexity of the modern society, it is likely that more problems are going to involve significant institutional and subjective effects, making a complete multidisciplinary study more necessary. As an introduction to this argument, the Harrod‐Hirsch concept of positional goods and its implications on the desirability of economic growth are analysed geometrically and extended. A simple method to reduce the difficulty of comparability in happiness surveys is also suggested. Erhöht Wirtschaftswachstum die soziale Wohlfahrt (Gliick)? Antworten aufsolche Fragen können nur durch eine vollständige Analyse aller objektiven, subjektiven und institutionellen Wirkungen gegeben werden. Alle in der subjektiven Welt begründeten Massnahmen wirken, durch die institutionellen Gegebenheiten, auf die objektive Welt, den institutionellen Rahmen und/oder die subjektive Welt. Wegen der zunehmenden Komplexität der modernen Gesellschaft werden wahrscheinlich immer mehr Probleme bedeutende institutionelle und subjektive Auswirkungen haben, so dass eine umfassende, multidisziplinäre Untersuchung notwendiger wird. Um diese Forderung zu begründen, wird das Konzept der positionalen Güter und dessen Bedeutung für die Wünschbarkeit des Wirtschaftswachstums von Harrod‐Hirsch geometrisch analysiert und erweitert. Ausserdem wird eine einfache Methode vorgeschlagen, mit der die beim Vergleich von hafifiiness surveys auftretenden Schwierigkeiten vermindert werden können. La croissance économique accroit‐elle le bien‐être social (bonheur)? Seule l'analyse compléte de tous ses effets objectifs, subjectifs et institutionnels permet de fournir des réponses à cette question. Toutes les mesures prennent leur origine dans le monde subjectif et évoluent dans le cadre institutionnel pour modifier le monde objectif, le cadre institutionnel et/ou le monde subjectif. Du fait de la complexité croissante de la société moderne, il est vraisemblable que des problémes de plus en plus nombreux vont induire des effets, institutionnels et subjectifs, significatifs, rendant plus nécessaire une étude pluridisciplinaire compléte. Comme introduction à cette thése, l'auteur analyse de facon géométrique le concept de Harrod et Hirsch des biens ‘positionnels’ et sur conséquences sur la désirabilité de la croissance économique, puis il élargit cette analyse. II propose enfin une méthode simple pour diminuer la difficulté de comparaison dans les analyses du bonheur.

Suggested Citation

  • Yew‐Kwang Ng*, 1978. "Economic Growth And Social Welfare: The Need For A Complete Study Of Happiness," Kyklos, Wiley Blackwell, vol. 31(4), pages 575-587, November.
  • Handle: RePEc:bla:kyklos:v:31:y:1978:i:4:p:575-587
    DOI: 10.1111/j.1467-6435.1978.tb00660.x
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    Cited by:

    1. Bruce Headey, 2008. "Life Goals Matter to Happiness: A Revision of Set-Point Theory," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(2), pages 213-231, April.
    2. Luigino Bruni & Luca Stanca, 2006. "Income Aspirations, Television and Happiness: Evidence from the World Values Survey," Kyklos, Wiley Blackwell, vol. 59(2), pages 209-225, May.
    3. Stefanie Schurer & Jongsay Yong, 2016. "Happiness, Income And Heterogeneity," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-23, June.
    4. Leonardo E. Letelier-S & José L. Sáez-Lozano, 2020. "Expenditure Decentralization: Does It Make Us Happier? An Empirical Analysis Using a Panel of Countries," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    5. de la Croix, David, 1998. "Growth and the relativity of satisfaction," Mathematical Social Sciences, Elsevier, vol. 36(2), pages 105-125, September.
    6. Easterlin, Richard A., 2003. "Building a Better Theory of Well-Being," IZA Discussion Papers 742, Institute of Labor Economics (IZA).
    7. Bruce Headey, 2008. "The Set-Point Theory of Well-Being: Negative Results and Consequent Revisions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 85(3), pages 389-403, February.
    8. Simone Borghesi & Alessandro Vercelli, 2012. "Happiness And Health: Two Paradoxes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 203-233, April.
    9. Konow, James & Earley, Joseph, 2008. "The Hedonistic Paradox: Is homo economicus happier," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 1-33, February.
    10. Bruce Headey, 2006. "Life Goals Matter to Happiness: A Revision of Set-Point Theory," Discussion Papers of DIW Berlin 639, DIW Berlin, German Institute for Economic Research.
    11. Desiree I. Christofzik & Sebastian G. Kessing, 2023. "On the Public Provision of Positional Goods," Volkswirtschaftliche Diskussionsbeiträge 196-23, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    12. Yew‐Kwang Ng, 2008. "Happiness Studies: Ways to Improve Comparability and Some Public Policy Implications," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 253-266, June.
    13. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    14. Bruce Headey, 2007. "The Set-Point Theory of Well-Being Needs Replacing: On the Brink of a Scientific Revolution?," SOEPpapers on Multidisciplinary Panel Data Research 55, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Bünger Björn & Prinz Aloys, 2010. "Staatliche Glücksförderung? Karl Popper, Richard Layard und das Rauchen / Should public policy pursue happiness? Karl Popper, Richard Layard and smoking," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 61(1), pages 169-190, January.

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