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Preferences for Well-Being and Life Satisfaction

Author

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  • Leonardo Becchetti

    (University of Rome “Tor Vergata”)

  • Pierluigi Conzo

    (Naples (Italy) & Collegio Carlo Alberto
    University of Turin)

Abstract

We test whether preferences over different well-being domains significantly correlate with life satisfaction. A sample of respondents is asked to simulate a policymaker decision consisting in allocating hypothetical financial resources among 11 well-being domains. We find that the willingness to invest more in the economic well-being domain is negatively correlated with life satisfaction. We argument that this evidence, while not excluding other rationales, is consistent with the utility misprediction hypothesis suggesting that individuals make systematic errors in estimating the well-being implied from their choices. Subsample estimates document that the less educated are more affected by the problem.

Suggested Citation

  • Leonardo Becchetti & Pierluigi Conzo, 2018. "Preferences for Well-Being and Life Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(2), pages 775-805, April.
    • Handle: RePEc:spr:soinre:v:136:y:2018:i:2:d:10.1007_s11205-017-1566-8
    DOI: 10.1007/s11205-017-1566-8
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    2. Pham, Tho & Talavera, Oleksandr & Zhang, Mao, 2018. "Self-employment, financial development, and well-being: Evidence from China, Russia, and Ukraine," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 754-769.

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    More about this item

    Keywords

    Life satisfaction; Well-being preferences; Utility misprediction; Subjective well-being;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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