Emotions, Happiness and Growth: Spinoza, James, and Ramsey
This paper adapts the Ethics of Spinoza into the Ramsey growth model and shows that the way people conceive and understand life, related to emotions of joy and sorrow, affects economic performance. The model has multiple equilibria: The Spinoza solution, optimism, leads to greater capital accumulation, income and consumption levels, while William James's solution, pessimism, leads to a worse economic performance. The Ramsey model, where emotions balance, lies in between these two solutions, showing that the neoclassical growth model can be seen as a particular case of the Spinoza model. Finally, regarding the relationship between emotions and economics, in the Spinoza and William James solutions emotions and happiness are determined independently from economic variables. Only in the Ramsey case are emotions explained by income and consumption.
Volume (Year): 16 (2011)
Issue (Month): 2 (September)
|Contact details of provider:|| Postal: Burton Street, Nottingham, NG1 4BU|
Web page: http://www.economicissues.org.uk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael S. Lawlor, 2006. "William James's psychological pragmatism: habit, belief and purposive human behaviour," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 321-345, May.
- Bruno S. Frey, .
"Happiness Research: State and Prospects,"
IEW - Working Papers
192, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Alois Stutzer, . "Happiness Research: State and Prospects," IEW - Working Papers 190, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Alois Stutzer, 2004. "Happiness Research: State and Prospects," CREMA Working Paper Series 2004-10, Center for Research in Economics, Management and the Arts (CREMA).
- Faria, Joao Ricardo, 1998. "The Economics of Witchcraft and the Big Eye Effect," Kyklos, Wiley Blackwell, vol. 51(4), pages 537-46.
- Jack Barbalet, 2008. "Pragmatism and economics: William James' contribution," Cambridge Journal of Economics, Oxford University Press, vol. 32(5), pages 797-810, September.
- John R. Carter & Michael D. Irons, 1991. "Are Economists Different, and If So, Why?," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 171-177, Spring.
- Robert H. Frank & Thomas Gilovich & Dennis T. Regan, 1993. "Does Studying Economics Inhibit Cooperation?," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 159-171, Spring.
- Oswald, A.J., 1997.
"Happiness and Economic Performance,"
18, Centre for Economic Performance & Institute of Economics.
- Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics.
- Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999.
"Scarring: The Psychological Impact of Past Unemployment,"
Studies in Economics
9903, School of Economics, University of Kent.
- Clark, Andrew E & Georgellis, Yannis & Sanfey, Peter, 2001. "Scarring: The Psychological Impact of Past Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 221-41, May.
- Geoffrey M. Hodgson, 2003. "The hidden persuaders: institutions and individuals in economic theory," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 159-175, March.
- Twomey, Paul, 1998. "Reviving Veblenian Economic Psychology," Cambridge Journal of Economics, Oxford University Press, vol. 22(4), pages 433-48, July.
When requesting a correction, please mention this item's handle: RePEc:eis:articl:211dfaria. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan Wheatley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.