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Glück ? die ökonomische Analyse

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  • Bruno S. Frey
  • Alois Stutzer

Abstract

In economics there is presently an almost revolutionary development. The direct measurement of subjective welfare challenges traditional economics, inspires it, and opens new avenues for scientific research. The approaches and possibilities of an economic analysis of happiness are shown and illustrated with two specific applications. The relationship between income and life satisfaction is strongly shaped by the aspiration level serving to evaluate life conditions. The aspiration levels are formed by social comparisons and adaptation processes. The Life Satisfaction Approach is a new method to capture the value of public goods. The short discussion of governmental ?happiness policy? from a constitutional viewpoint suggests a comparative institutional analysis of subjective well-being. The happiness revolution in economics is only at its beginning. More insights concerning institutions allowing people to pursue their own conception of a good life are to be expected.

Suggested Citation

  • Bruno S. Frey & Alois Stutzer, 2009. "Glück ? die ökonomische Analyse," CREMA Working Paper Series 2009-11, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2009-11
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    References listed on IDEAS

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    5. Bruno S. Frey & Alois Stutzer, 2009. "Should National Happiness be Maximized?," Chapters, in: Amitava Krishna Dutt & Benjamin Radcliff (ed.), Happiness, Economics and Politics, chapter 14, Edward Elgar Publishing.
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    10. Bruno Frey & Simon Luechinger & Alois Stutzer, 2009. "The life satisfaction approach to valuing public goods: The case of terrorism," Public Choice, Springer, vol. 138(3), pages 317-345, March.
    11. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Happiness; Life Satisfaction; Economics; Income; Terrorism;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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