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Valuing Health Conditions - Insights from Happiness Surveys across Countries and Cultures

Author

Listed:
  • Carol Graham
  • Lucas Higuera
  • Eduardo Lora

Abstract

This paper assesses the effects of different health conditions on happiness. Based on a large data set for Latin America, the effects of different conditions are examined across age, gender, and income cohorts. Anxiety and pain have stronger effects than physical problems, likely because people can adapt better to one-time shocks than to constant uncertainty. The negative effects of health conditions are very large when compared to the effects of income on happiness. While higher peer income typically elicits envy, better peer health provides positive signals for life and health satisfaction. Nonetheless, health norms vary widely across countries. The results suggest that the life satisfaction approach applied to surveys of health may contribute to better health expenditure and policy decisions.

Suggested Citation

  • Carol Graham & Lucas Higuera & Eduardo Lora, 2009. "Valuing Health Conditions - Insights from Happiness Surveys across Countries and Cultures," Research Department Publications 4635, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4635
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    References listed on IDEAS

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    Cited by:

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    3. Sujarwoto Sujarwoto & Gindo Tampubolon & Adi Cilik Pierewan, 2018. "Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income Country," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(4), pages 927-945, December.

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    Keywords

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    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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