nep-hap New Economics Papers
on Economics of Happiness
Issue of 2021‒04‒05
five papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Life Satisfaction and the Human Development Index Across the World By Rémi Yin; Anthony Lepinteur; Andrew Clark; Conchita Ambrosio
  2. The Causal Effect of Depression and Anxiety on Life Satisfaction: An Instrumental Variable Approach By Arnar Buason; Edward C. Norton; Paul McNamee; Edda Bjork Thordardottir; Tinna Laufey Asgeirsdóttir
  3. Revisiting the Expected Utility Theory and the Consumption CAPM By Sapre, Nikhil
  4. Resilience to Disaster: Evidence from Daily Wellbeing Data By Paul Frijters; David W. Johnston; Rachel J Knott; Benno Torgler
  5. When nomadic technologies simultaneously influence well-being and stress at work By Pierre Loup; Jonathan Maurice; Florence Rodhain

  1. By: Rémi Yin (University of Luxembourg [Luxembourg]); Anthony Lepinteur (University of Luxembourg [Luxembourg]); Andrew Clark (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Conchita Ambrosio (University of Luxembourg [Luxembourg])
    Abstract: We use annual data on over 150 countries between 2005 and 2018 to look at the relationship between subjective well-being (both cognitive and affective) and the Human Development Index (HDI). The HDI appears to be more closely related to cognitive than affective well-being. We also consider the relationships between the three HDI components (the Income, Health and Education Indices) and well-being, and find that, on average, the Income Index has the strongest predictive power. Importantly, we find that the three HDI components only matter equally in Western and rich countries. Our analysis contributes to the discussion about cultural sensitivity in paradigms of societal development in two ways. We first show that differences in preferences towards development aims exist. Second, we propose a weighting procedure for a culturally-sensitive version of the HDI.
    Keywords: Human Development Index,Subjective Well-being,Gallup World Poll,Country Groups Human Development Index,Country Groups
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03174513&r=all
  2. By: Arnar Buason; Edward C. Norton; Paul McNamee; Edda Bjork Thordardottir; Tinna Laufey Asgeirsdóttir
    Abstract: Within the vast body of literature on the relationship between mental disorders and life satisfaction, no satisfactory treatment has been proposed to deal with the bi-directional relationship between the two. We estimate the causal effect of depression and anxiety on life satisfaction by applying an instrumental-variable regression approach to the Household, Income and Labour Dynamics in Australia (HILDA) survey. Our identification strategy exploits regional variation in the tendency to diagnose depression and anxiety, while also using an individual-level panel-data method. Our results show that previous research seriously overestimates the effect of depression and anxiety on life satisfaction. The most comparable estimate from previous research is over five times the size of our estimate. Furthermore, those papers that use such estimates to measure the monetary value of not suffering from depression or anxiety find it to be between $14 to $600 million a year per individual, compared to our estimate of around $60 thousand. Another source of bias which further inflates previous monetary estimates is the endogeneity of income. We account for this issue by using irregular sources of income, such as lottery winnings, instead of regular household income.
    JEL: I12 I14 I31
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:28575&r=all
  3. By: Sapre, Nikhil
    Abstract: The concept of utility is the core component of many foundational theories in social sciences. It has evolved from a philosophical belief that people seek happiness and satisfaction to a mathematically derived theory in economics and finance. Beginning with a brief review of the developments in the Expected Utility Theory (EUT) and its applicability in equity pricing, this paper includes a critical appraisal of relevant theoretical and empirical studies from the fields of financial economics and behavioural studies, with a particular focus on the the Consumption Capital Asset Pricing Model (CCAPM).
    Keywords: Expected Utility, Choice Behaviour, Equity Pricing, CCAPM
    JEL: G10 G11 G12
    Date: 2021–02–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:106668&r=all
  4. By: Paul Frijters; David W. Johnston; Rachel J Knott; Benno Torgler
    Abstract: As the severity and frequency of natural disasters become more pronounced with climate change and the increased habitation of at-risk areas, it is important to understand people’s resilience to them. We quantify resilience by estimating how natural disasters in the US impacted individual wellbeing in a sample of 2.2 million observations, and whether the effect sizes differed by individual- and county-level factors. The event-study design contrasts changes in wellbeing in counties affected by disasters with that of residents in unaffected counties of the same state. We find that people’s hedonic wellbeing is reduced by approximately 6% of a standard deviation in the first two weeks following the event, with the effect diminishing rapidly thereafter. The negative effects are driven by White, older, and economically advantaged sub-populations, who exhibit less resilience. We find no evidence that existing indices of community resilience moderate impacts. Our conclusion is that people in the US are, at present, highly resilient to natural disasters.
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:cra:wpaper:2021-13&r=all
  5. By: Pierre Loup (MRM - Montpellier Research in Management - UM - Université de Montpellier - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1 - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3, UM - Université de Montpellier); Jonathan Maurice (TSM - Toulouse School of Management Research - UT1 - Université Toulouse 1 Capitole - CNRS - Centre National de la Recherche Scientifique - TSM - Toulouse School of Management - UT1 - Université Toulouse 1 Capitole); Florence Rodhain (MRM - Montpellier Research in Management - UM - Université de Montpellier - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1 - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3, UM - Université de Montpellier)
    Abstract: The aim of this article is to analyze the role of mobile technologies (MT) on employees' well-being and technostress. Two research questions are considered: (1) To what extent do employees perceive these technologies as additional job demands and/or resources in their daily work? (2) How does the combination of demands and resources given by MT influence well-being, stress and performance at work? To answer these questions, a qualitative study was conducted within La Poste group that introduced MT for its commercial departments. The results show that this kind of devices is perceived as resources by individuals and improve their well-being at work. At the same time, and independently, they generate techno-overload and techno-invasion in private life, increasing the level of stress to which the individual may be exposed. From a theoretical perspective, this study documents the disconnection between well-being at work and technostress. Both concepts can be fostered independently and simultaneously by the introduction of MT, namely through addictive behaviors. Based on our results, we develop a job demands-resources model (JD-R) adapted to such an introduction and formulate a set of research propositions.
    Abstract: L'objectif de cet article est d'étudier l'influence des technologies nomades (TN) sur le bien-être et le stress des individus au travail. Deux questions de recherche sont envisagées : (1) Dans quelle mesure les individus perçoivent-ils ces technologies comme des exigences et/ou des ressources supplémentaires dans l'exercice de leur travail ? (2) Comment la combinaison des exigences et ressources liées aux TN influence-t-elle le bien-être, le stress et la performance au travail ? Pour répondre à ces questions, une étude qualitative a été menée au sein du groupe La Poste ayant introduit des TN pour ses directions commerciales. Les résultats montrent que ces dernières sont d'abord perçues comme des ressources par les individus, et entrainent une amélioration de leur bien-être au travail. Dans le même temps et indépendamment, elles engendrent une surcharge de travail et une invasion de la technologie dans la sphère personnelle, influençant le niveau de stress auquel peut être confronté l'individu. Sur le plan théorique, l'article met alors en exergue la déconnexion entre bien-être au travail et stress technologique, les deux pouvant émerger indépendamment lors de l'introduction de TN, à travers des comportements d'addiction. Nous développons grâce aux résultats un modèle job demands-resources (JD-R) adapté à ce contexte et construisons un ensemble de propositions de recherche émergeant de notre cas.
    Keywords: mobile technologies,well-being at work,stress at work,techno-well-being technostress,job demands-resources model,technologies nomades,bien-être au travail,stress professionnel,bien-être technologique,technostress,modèle job demands-resources
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03126046&r=all

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