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Measuring Preferences by Subjective Well-Being

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Author Info
Bruno S. Frey
Alois Stutzer

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Abstract

The measurement of preferences is an ongoing challenge for economists. New insights can be won by relying on reported subjective well-being in addition to observed behaviour. Empirical estimates of well-being functions, based on a sample of 5500 Swiss residents, find that unemployed persons are much unhappier than employed ones. Differences in life satisfaction between income classes are quite small and improvements in financial situation hardly raise happiness. Moreover, well-being functions are valuable in revealing the utility derived from constitutional conditions. Our econometric estimates suggest that more extended citizens' participation possibilities in the democratic process tend to raise subjective well-being.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 155 (1999)
Issue (Month): 4 (December)
Pages: 755-
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199912)155:4_755:mpbsw_2.0.tx_2-6

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Find related papers by JEL classification:
D60 - Microeconomics - - Welfare Economics - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare

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  1. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Bernard M.S. van Praag & Ada Ferrer-i-Carbonell, 2002. "Life Satisfaction Differences between Workers and Non-Workers - The Value of Participation per se," Tinbergen Institute Discussion Papers 02-018/3, Tinbergen Institute. [Downloadable!]
  3. Nattavudh Powdthavee, 2003. "Unhappiness and Crime: Evidence from South Africa," Development and Comp Systems 0310003, EconWPA, revised 17 Mar 2004. [Downloadable!]
    Other versions:
  4. Ferrer-i-Carbonell, Ada & van Praag, Bernard M.S., 2001. "The Subjective Costs of Health Losses due to Chronic Diseases: An Alternative Model Appraisal," IZA Discussion Papers 313, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Hild-Marte Bjørnsen, 2005. "Living conditions and subjective well-being of farmers - An ordered response analysis of regional differences and changes over time," ERSA conference papers ersa05p95, European Regional Science Association. [Downloadable!]
  6. Alois Stutzer & Rafael Lalive, . "The Role of Social Work Norms in Job Searching and Subjective Well-Being," IEW - Working Papers iewwp051, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  7. Bernard M. S. van Praag & P. Frijters & Ada Ferrer-i-Carbonell, 2001. "The Anatomy of Subjective Well-Being," Discussion Papers of DIW Berlin 265, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  8. Gary Charness & Brit Grosskopf, 1999. "Relative Payoffs and Happiness: An Experimental Study," Economics Working Papers 436, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2000. [Downloadable!]
    Other versions:
  9. Ferrer-i-Carbonell, Ada & van Praag, Bernard M.S., 2001. "Poverty in the Russian Federation," IZA Discussion Papers 259, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Bernd Hayo, 2004. "Happiness in Eastern Europe," Public Economics 0410002, EconWPA. [Downloadable!]
    Other versions:
  11. Andrew Clark, 2001. "Unemployment As A Social Norm: Psychological Evidence from Panel Data," DELTA Working Papers 2001-17, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  12. Ada Ferrer-i-Carbonell & Bernard M. S. van Praag, 2001. "The Subjective Costs of Health Losses Due to Chronic Diseases : An Alternative Model for Monetary Appraisal," Discussion Papers of DIW Berlin 262, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  13. Ada Ferrer-i-Carbonell & Bernard M.S. van Praag, 2002. "The Subjective Costs of Health Losses due to Chronic Diseases," Tinbergen Institute Discussion Papers 02-023/3, Tinbergen Institute. [Downloadable!]
  14. Bruno S. Frey & Alois Stutzer, . "Testing Theories of Happiness," IEW - Working Papers iewwp147, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  15. Bruno S. Frey & Alois Stutzer, . "Maximising Happiness?," IEW - Working Papers iewwp022, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
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