Reported Subjective Well-Being: A Challenge for Economic Theory and Economic Policy
AbstractOver the past few years, there has been a steadily increasing interest on the part of economists in happiness research. This paper argues that reported subjective well-being is a satisfactory empirical approximation to individual utility and endeavors to provide an impression of this new, and challenging, development. We study data from the German Socio-Economic Panel to better understand (i) the role of aspirations in the relationship between income and happiness and (ii) the effect of unemployment on people?s satisfaction with life. We discuss some of the consequences for economic policy and for economic theory.
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Bibliographic InfoPaper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2003-07.
Date of creation: Jul 2003
Date of revision:
aspiration level; relative income; subjective well-being; unemployment; utility;
Other versions of this item:
- Alois Stutzer & Bruno S. Frey, 2004. "Reported Subjective Well-Being: A Challenge for Economic Theory and Economic Policy," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(2), pages 191-231.
- D60 - Microeconomics - - Welfare Economics - - - General
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
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