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on Economics of Happiness |
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Issue of 2007‒12‒08
two papers chosen by |
| By: | Claudia Biancotti (Bank of Italy, Economics and Financial Statistics Department); Giovanni D'Alessio (Bank of Italy, Economics and Financial Statistics Department) |
| Abstract: | This paper examines the relationship between inequality and happiness through the lens of heterogeneous values, beliefs and inclinations. Drawing upon opinion data from the European Social Survey for twenty-three countries, we find that individual views on a wide range of themes can be effectively summarized by two orthogonal dimensions: moderation and inclusiveness. The former is defined as a tendency to take mild stands on issues rather than extreme ones; the latter is defined as the degree of support for a social model that grants equal rights and opportunities to everyone who willingly subscribes to a shared set of rules, regardless of background and circumstances. These traits matter when it comes to how inequality affects subjective well-being; specifically, those who are either more moderate or more inclusive than their average compatriot tend to dislike inequality. With reference to moderation, inequality aversion can be read in terms of a desire for stability: people who are reluctant to take strong stands probably dislike conflict, tension and unrest, which normally accompany inequalities. With reference to inclusiveness, the main element at play is likely to be distress accruing to a perception of unfairness. |
| Keywords: | Happiness, inequality, heterogeneity |
| JEL: | D31 D63 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2007-75&r=hap |
| By: | José Javier Núñez-Velázquez (Departamento de Estadística, Estructura Económica y O.E.I. Universidad de Alcalá); Juana Domínguez-Domínguez (Departamento de Estadística, Estructura Económica y O.E.I. Universidad de Alcalá) |
| Abstract: | This paper deals with the proposal of a synthetic indicator to measure intensity of poverty. So, whereas incidence of poverty can be clearly measured using the headcount ratio indicator, according to Sen (1976) dimensions of poverty, the choice of a better intensity poverty measure is still an open question to resolve. Thus, in this paper, a new procedure to obtain a synthetic indicator from a set of well-performed poverty intensity indices as a start is proposed, using an adaptation of Principal Component Analysis (PCA). Conditions needed to make longitudinal comparisons possible are studied and properties of these synthetic indicators will also be analyzed, connected to TIP curves as well. As an illustration, this paper analyzes the evolution of poverty in the 15 countries of E.U., whose household income data are available through the information contained in the European Community Household Panel (ECPH). This analysis allows static and dynamic comparisons, related to the period from 1993 to 2000. Furthermore, the determination of groups of countries according to their characteristics in poverty will be accomplished. |
| Keywords: | Economic Poverty, TIP’s poverty curves, Poverty in EU countries, PHOGUE. |
| JEL: | C43 D31 I32 O52 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2007-81&r=hap |