The "Efficiency" Effect of Conceptual Referents on the Generation of Happiness: A Cross-National Analysis

This paper analyses how different definitions of happiness affect the individual assessment of subjective wellbeing. Bearing in mind the production theory, we study the impact of definitions of happiness on how efficiently a set of determinants are used and converted into happiness. From a theoretical point of view, we discuss the role of the Conceptual Referent Theory within the affective-cognitive process of personal evaluation of happiness. We use data from the Understanding High Happiness in Latin America survey (2018), which includes a sample of people from Colombia, Costa Rica, Mexico and the USA, to investigate how happiness conceptual referents influence personal assessment using Stochastic Frontier Analysis. This method permits to assess the impact of different definitions of happiness on how a set of standard drivers like income and social relations are used and converted into perceived happiness. To this end, conceptual referents for happiness are treated as (in)efficiency factors. This study shows that the concept of happiness shapes how individuals value the same inputs. “Stoicism”, “virtue” and “enjoyment” emerge as the most efficient referents. Also, we observe that cross-country differences in the level of perceived happiness are associated with differences in the prevalence of conceptual referents. In the USA, where less efficient definitions prevail, people report lower levels of happiness.