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Laboratory Evidence For Emotional Externalities: An Essay In Honor Of Ej Mishan

Author

Listed:
  • DANIEL SGROI

    (Department of Economics, University of Warwick, Gibbet Hill Road, Coventry CV4 7AL, UK)

  • EUGENIO PROTO

    (Department of Economics, University of Warwick, Gibbet Hill Road, Coventry CV4 7AL, UK)

  • ANDREW J. OSWALD

    (Department of Economics, University of Warwick, Gibbet Hill Road, Coventry CV4 7AL, UK)

  • ALEXANDER DOBSON

    (Department of Economics, University of Warwick, Gibbet Hill Road, Coventry CV4 7AL, UK)

Abstract

Professor EJ Mishan was a world expert on the idea of externalities. In this paper, we provide evidence for the intuitive idea of “emotional externalities”. These might be viewed as psychological spillovers from the well-being of one person upon the well-being of another. A new form of laboratory experiment is implemented. “Happiness” answers are elicited in the first few seconds of the experiment. Tragic life events — like family illness and bereavement — are then studied. The paper documents evidence consistent with a powerful caring-about-others effect. The paper’s results also suggest an approximate equivalence between life-satisfaction data and happiness data.Statistical offices should incorporate questions to capture people’s life evaluations, hedonic experiences and priorities … All these aspects of subjective well-being (cognitive evaluations, positive affects and negative affects) should be measured separately to get a satisfactory appreciation of people’s lives. Which of these aspects matters more, and for what purpose, is still an open question.Stiglitz et al., Commission on the Measurement of Economic Performance and Social Progress, 2009

Suggested Citation

  • Daniel Sgroi & Eugenio Proto & Andrew J. Oswald & Alexander Dobson, 2016. "Laboratory Evidence For Emotional Externalities: An Essay In Honor Of Ej Mishan," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-25, June.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:03:n:s0217590816400154
    DOI: 10.1142/S0217590816400154
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