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The Economics of Happiness

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  • Carol Graham

Abstract

The economics of happiness is an approach to assessing welfare that combines economists’ techniques with those of psychologists, and relies on more expansive notions of utility than does conventional economics. Research based on this approach highlights the factors—in addition to income—that affect well-being. It is well suited to informing questions in areas where revealed preferences provide limited information, such as the welfare effects of inequality and of macroeconomic policies such as inflation and unemployment. One such question is the gap between economists’ assessments of the aggregate benefits of the globalization process and the more pessimistic assessments that are typical of the general public. The paper summarizes research on some of these questions, and in particular on those relevant to globalization, poverty, and inequality.

Suggested Citation

  • Carol Graham, 2005. "The Economics of Happiness," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(3), pages 41-55, July.
  • Handle: RePEc:wej:wldecn:214
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    2. Martijn Burger & Martijn Hendriks & Elena Ianchovichina, 2022. "Happy but Unequal: Differences in Subjective Well-Being across Individuals and Space in Colombia," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(3), pages 1343-1387, June.
    3. Otrachshenko, Vladimir & Tyurina, Elena & Nagapetyan, Artur, 2022. "The economic value of the Glass Beach: Contingent valuation and life satisfaction approaches," Ecological Economics, Elsevier, vol. 198(C).
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    6. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    7. Marina G. Kolosnitsyna & Natalia A. Khorkina & Khongor N. Dorzhiev, 2014. "What Happens To Happiness When People Get Older? Socio-Economic Determinants Of Life Satisfaction In Later Life," HSE Working papers WP BRP 68/EC/2014, National Research University Higher School of Economics.
    8. Anna Barwińska Małajowicz & Miroslava Knapková & Krzysztof Szczotka & Miriam Martinkovičová & Radosław Pyrek, 2022. "Energy Efficiency Policies in Poland and Slovakia in the Context of Individual Well-Being," Energies, MDPI, vol. 16(1), pages 1-29, December.
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    10. Cosimato, Silvia & Faggini, Marisa & Prete, Marzia del, 2021. "The co-creation of value for pursuing a sustainable happiness: The analysis of an Italian prison community," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    11. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    12. David G. Blanchflower & Alex Bryson, 2020. "Now Unions Increase Job Satisfaction and Well-being," NBER Working Papers 27720, National Bureau of Economic Research, Inc.
    13. Larry Dwyer, 2022. "Productivity, Destination Performance, and Stakeholder Well-Being," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-16, July.
    14. Mojca Svetek & Mateja Drnovsek, 2022. "Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 23(1), pages 149-170, January.
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    17. Pełka Marcin, 2019. "Analysis of Happiness in EU Countries Using the Multi-Model Classification based on Models of Symbolic Data," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 23(3), pages 15-25, September.
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    19. Dimitris Ballas & Ilias Thanis, 2022. "Exploring the Geography of Subjective Happiness in Europe During the Years of the Economic Crisis: A Multilevel Modelling Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 105-137, November.
    20. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).
    21. Luca Andriani & Gaygysyz Ashyrov, 2022. "Corruption and life satisfaction: Evidence from a transition survey," Kyklos, Wiley Blackwell, vol. 75(4), pages 511-535, November.
    22. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    23. Burger,Martijn & Hendriks,Martijn & Ianchovichina,Elena, 2022. "Anatomy of Brazil’s Subjective Well-Being : A Tale of Growing Discontent and Polarization in the 2010s," Policy Research Working Paper Series 9924, The World Bank.

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