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on Economics of Happiness |
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Issue of 2013‒06‒30
six papers chosen by |
| By: | Matteus Joffily (Center for Mind/Brain Sciences - UNIVERSITÀ DEGLI STUDI DI TRENTO); Giorgio Coricelli (Center for Mind/Brain Sciences - UNIVERSITÀ DEGLI STUDI DI TRENTO, GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon, Department of Economics, University of Southern California - University of Southern California) |
| Abstract: | The free-energy principle has recently been proposed as a unified Bayesian account of perception, learning and action. Despite the inextricable link between emotion and cognition, emotion has not yet been formulated under this framework. A core concept that permeates many perspectives on emotion is valence, which broadly refers to the positive and negative character of emotion or some of its aspects. In the present paper, we propose a definition of emotional valence in terms of the negative rate of change of free-energy over time. If the second time-derivative of free-energy is taken into account, the dynamics of basic forms of emotion such as happiness, unhappiness, hope, fear, disappointment and relief can be explained. In this formulation, an important function of emotional valence turns out to regulate the learning rate of the causes of sensory inputs. When sensations increasingly violate the agent's expectations, valence is negative and increases the learning rate. Conversely, when sensations increasingly fulfil the agent's expectations, valence is positive and decreases the learning rate. This dynamic interaction between emotional valence and learning rate highlights the crucial role played by emotions in biological agents' adaptation to unexpected changes in their world. |
| Keywords: | Emotional Valence ; Free-Energy Principle |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00834063&r=hap |
| By: | Kravdal, Øystein (Dept. of Economics, University of Oslo) |
| Abstract: | There have been many studies of how the number of children in a family affects the parents’ or the children’s lives. One strand of this research focuses on the implications of fertility for the parents’ level of self-reported well-being or happiness. It is argued in this paper that an overall “happiness effect” is not very informative because of the presumably large variation in individuals’ perceived gains from having children. Furthermore, it is explained that such an effect would be difficult to estimate. Most importantly, the highly varying ideas about how a child will affect life quality are important for the decision about whether to have a child. Many of those who have few or no children have chosen this because they think their life will be best this way, and their happiness therefore tells us little about how happy their more fertile counterparts - who to a large extent have other preferences – would have been if they had few or no children. This estimation problem that arises because expectations about the effects of a certain behaviour (here childbearing) are heterogenous, and also affect that very behaviour, is acknowledged in the economics literature, but there is little consciousness about it in the fertility-happiness research. In addition, there is a more “standard” selection problem: factors with implications for childbearing desires, or for the chance of fulfilling these, may also affect or be linked to happiness for other reasons. Unfortunately, even the most advanced statistical approaches that have been used in this research area fail to handle all these problems, so reported results should be interpreted very cautiously. |
| Keywords: | fertility; happiness; effect heterogeneity; mehod; selection; subjective well-being |
| JEL: | J13 |
| Date: | 2013–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2013_010&r=hap |
| By: | Francesca Acacia (University of Edinburgh); Maria Cubel (University of Barcelona & IEB) |
| Abstract: | In this paper we extend the research on happiness and spatial theory of voting by exploring whether strategic and sincere voting affect subjective well-being. We conduct the analysis with data on a large sample of individuals over 50 elections in 16 OECD countries. The results of the analysis show the existence of a negative effect of strategic voting on subjective well-being. In addition, the likelihood of being satisfied decreases when individuals vote strategically for a political party that wins the electoral race. Furthermore, when we analyse separately left-wing and right-wing voters, we find that the described effect holds for left-wing voters but no for right-wing voters. We discuss this evidence in the light of expressive voting theory (Hilman, 2010) and lack of empathy with future selves (Kahneman and Thaler, 1991). Our results are robust to different measures of strategic voting and subjective well-being. |
| Keywords: | Happiness, life satisfaction, strategic voting, political ideology |
| JEL: | D72 D03 I31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-19&r=hap |
| By: | Joachim Merz (LEUPHANA University Lüneburg); Bettina Scherg (LEUPHANA University Lüneburg) |
| Abstract: | A growing polarization of society accompanied with an erosion of the middle class experiences more and more attention at least in the German recent economic and social policy discussion. Our study contributes to the polarization discussion with respect to multidimensional theoretical measurement and empirical application in two ways: First, we propose extended multidimensional polarization indices based on a CES-type well-being function and present a new measure to multidimensional polarization, the mean minimum polarization gap 2DGAP. This polarization intensity measure provides transparency with regard to each singular attributes – important for targeted policies – and ensures at the same time its interdependent relations. Second, the empirical application – in addition to the traditional income measure –incorporates time as a fundamental resource for any activity. In particular, genuine personal leisure time will take care of social participation in the spirit of social inclusion/exclusion and Amartya Sen’s capability approach. Instead of arbitrarily choosing the attributes’ parameters in the CES well-being function the interdependent relations of time and income will be evaluated by German Society. With the German Socio-Economic Panel (SOEP) and detailed time use diary data of the available German Time Use Survey (GTUS) 1991/92 and 2001/02 we quantify available and extended multidimensional polarization measures as well as our new approach for the polarization development of the working poor and the working rich in Germany. Results: Genuine personal leisure time in addition to income is an important polarization attribute. Compensation is of economic and static significance. In particular supported by the new minimum 2DGAP approach, multidimensional polarization increased over that decade in Germany. |
| Keywords: | Multidimensional polarization, intensity of time and income poverty and affluence, interdependent multidimensional time and income poverty and affluence, minimum multidimensional polarization gap (2DGAP), extended economic well-being, satisfaction/happiness, working poor, CES well-being function, German Socio-Economic Panel, German Time Use Surveys 1991/92 and 2001/02. |
| JEL: | I32 D31 J22 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2013-297&r=hap |
| By: | FitzRoy, Felix (University of St. Andrews); Nolan, Michael A. (University of Hull); Steinhardt, Max (Hamburg Institute of International Economics (HWWI)); Ulph, David (University of St. Andrews) |
| Abstract: | In contrast to previous results combining all ages we find positive effects of comparison income on happiness for the under 45s, and negative effects for those over 45. In the BHPS these coefficients are several times the magnitude of own income effects. In GSOEP they cancel to give no effect of effect of comparison income on life satisfaction in the whole sample, when controlling for fixed effects, and time-in-panel, and with flexible, age-group dummies. The residual age-happiness relationship is hump-shaped in all three countries. Results are consistent with a simple life cycle model of relative income under uncertainty. |
| Keywords: | subjective life-satisfaction, comparison income, reference groups, age, welfare |
| JEL: | D10 I31 J10 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7452&r=hap |
| By: | Piper, Alan T. |
| Abstract: | This study investigates in three steps whether there is an association between happiness and living in one of Europe’s capital cities. Making use of the European Social Survey, the first step is a raw unadjusted correlation assessment which finds a negative and statistically significant effect on happiness of living in one of Europe’s capitals. The second step is the addition of socio-economic controls which (overall) increases the happiness penalty associated with living in a European capital city. This picture, like that of the initial finding, is different in different capitals; however no capital is associated with higher levels of happiness than elsewhere in that country. The third step adds environmental factors and perceptions (safety of local area, worries about crime, for example) to control for potential confounding factors. Tentative evidence is also presented that this is not just a big city effect. Overall, there is a happiness penalty associated with living in Europe’s capitals though this result is dominated by a few particularly unhappy capitals. |
| Keywords: | Happiness, Life Satisfaction, Geography, European Social Survey |
| JEL: | I31 R19 R23 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47793&r=hap |