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on Economics of Happiness |
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Issue of 2025–06–09
seven papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Daniel J. Benjamin; Kristen B. Cooper; Ori Heffetz; Miles S. Kimball; Tushar Kundu |
| Abstract: | We elicited over a million stated preference choices over 126 dimensions or “aspects” of well-being from a sample of 3, 358 respondents on Amazon’s Mechanical Turk (MTurk). Our surveys also collected self-reported well-being (SWB) questions about respondents’ current levels of the aspects of well-being. From the stated preference data, we estimate relative log marginal utilities per point on our 0-100 response scale for each aspect. We validate these estimates by comparing them to alternative methods for estimating preferences. Our findings provide empirical evidence that both complements and challenges philosophical perspectives on human desires and values. Our results support Aristotelian notions of eudaimonia through family relationships and Maslow’s emphasis on basic security needs, yet also suggest that contemporary theories of well-being may overemphasize abstract concepts such as happiness and life satisfaction, while undervaluing concrete aspects such as family well-being, financial security, and health, that respondents place the highest marginal utilities on. We document substantial heterogeneity in preferences across respondents within (but not between) demographic groups, with current SWB levels explaining a significant portion of the variation. |
| JEL: | D12 D90 I31 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33846 |
| By: | Rossouw, Stephanié; Greyling, Talita |
| Abstract: | The study of well-being has evolved significantly over the past three decades, reflecting both theoretical advancements and real-world applications across diverse populations, domains, and times. One of the most pressing issues in contemporary well-being research is the intersection between experienced well-being measures and societal compliance, especially in times of uncertainty. Effective crisis response depends not only on well-designed policies but also on how populations emotionally interpret uncertainty and respond behaviourally. This paper introduces a framework in which experienced well-being indicators are repositioned as behavioural inputs that shape compliance with public health interventions. Drawing on interdisciplinary theories, we argue that emotional readiness plays a critical role in driving prosocial behaviour during times of crisis. Using a cross-national dataset and applying XGBoost and SHAP, we examine how dynamic, within-country features, both structural and subjective, predict compliance with COVID-19 vaccination policy. Results show that general trust and happiness are among the strongest predictors of compliance, often rivalling or exceeding traditional factors like GDP per capita or healthcare spending. Our findings show experienced well-being indicators not only predict compliance within countries but also have cross-national relevance, providing a foundation for more psychologically informed policy design. We propose that policymakers integrate these emotional indicators into crisis response systems to improve behavioural effectiveness and public cooperation. |
| Keywords: | Compliance, global crisis, experienced well-being, emotions, XGBoost, SHAP |
| JEL: | C55 H12 I12 I18 Z13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1612 |
| By: | Isaac Parkes |
| Abstract: | Ideally, outcome measurements for interventions that affect wellbeing would report the standard, ONS recommended, life satisfaction question. Responses to this question directly correspond to WELLBYs, which can be monetised in policy appraisal following the UK Treasury's Green Book Supplementary Guidance. In this instance, the wellbeing impacts of a given policy are clear. However, while this form of social cost benefit analysis is still developing, measurement of life satisfaction often does not take place. In the absence of a universal wellbeing measure in policy, a host of other metrics and indices are collected, capturing similar concepts relating to wellbeing or health. To monetise wellbeing benefits in these cases, there is a need to map these indicators onto WELLBYs. This paper estimates mapping functions which translate common wellbeing measures into WELLBYs. It provides mapping functions for the General Health Questionnaire-12 (GHQ-12), Warwick-Edinburgh Mental Wellbeing Scale (WEMWBS), Short-form Warwick-Edinburgh Mental Wellbeing Scale (S-WEMWBS), Strengths and Difficulties Questionnaire (SDQ), Strengths and Difficulties Questionnaire - Internalising Scale (SDQ-I), Patient Health Questionnaire-9 (PHQ-9), and Generalised Anxiety Disorder Questionnaire-7 (GAD-7). |
| Keywords: | Wellbeing, Value for Money, WELLBY |
| Date: | 2025–06–03 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepops:70 |
| By: | Ori Heffetz; Yehonatan Caspi |
| Abstract: | What should researchers consider when designing experiments that (also) collect self-reported well-being (SWB) data? Focusing on experiments in economics, we examine the motivation behind SWB-data collection, survey leading past examples, and highlight potential pitfalls and their proposed countermeasures. We offer three main messages and a call to action. First, SWB measures should be handled with caution, especially in experiments. Second, despite their limitations, SWB measures can be used cleverly in the lab to provide evidence on questions that choice data alone cannot answer. Third, when collected, analyzed, and interpreted with appropriate caution, SWB measures can be important policy-evaluation outcomes, complementing the inherently incomplete picture provided by more traditional outcomes. We call on researchers to carefully and thoughtfully collect (a variety of) SWB measures in their online, lab, and field experiments. Such a joint, decentralized effort would also mean that over time, SWB data get explored, accumulated, and, hopefully, better understood. |
| JEL: | C83 C90 D90 I31 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33847 |
| By: | Jan Goebel; Christian Krekel; Katrin Rehdanz |
| Abstract: | Most people consider parks important for their quality of life, yet systematic causal evidence is missing. We exploit exogenous variations in their use values to estimate causal effects. Using a representative household panel with precise geographical coordinates of households linked to satellite images of green spaces with a nationwide coverage, we employ a spatial difference-in-differences design, comparing within-individual changes between residents living close to a green space and those living further away. We exploit Covid-19 as exogenous shock. We find that green spaces raised overall life satisfaction while reducing symptoms of anxiety (feelings of nervousness and worry) and depression. There is also suggestive evidence for reduced loneliness. Given the number of people in their surroundings, a compensating-surplus calculation suggests that parks added substantial benefits during the period studied. |
| Keywords: | Parks, Green Spaces, Mental Health, Quasi-Natural Experiment, Compensating Surplus, Wellbeing |
| Date: | 2025–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2106 |
| By: | David G. Blanchflower; Bruce Sacerdote |
| Abstract: | We study the determinants of poor mental health among students at an elite private institution. Survey measures of well-being have declined significantly over the last decade for both high school students and those of college age. This is an international phenomenon that appears to have started in the US around 2013 and that was not caused by but was exacerbated by COVID and the associated lockdowns. We focus on elite and non-elite institutions and examine Dartmouth as a special case. Dartmouth ranks well compared to other institutions. However, around a quarter of Dartmouth students (26%) report they suffer from moderate to severe depression and 22% that they suffer from moderate, to severe, anxiety and 10% say they contemplated suicide. Student’s wellbeing appears to be impacted negatively by stress over finances. We find broad patterns in the data, that ill-being is higher among females, those who engage in little exercise, have low GPAs, are not athletes nor in academic clubs nor religious organizations, reside in fraternity housing or are on financial aid. |
| JEL: | I20 I3 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33742 |
| By: | Heng-fu Zou |
| Abstract: | This paper develops a dynamic, neuroscience-based theory of utility and disutility, replacing the static scalar utility functions of classical economics with a biologically grounded, mathematically rigorous framework. Drawing from molecular, cellular, systems, and computational neuroscience, we model subjective wellbeing as a neurodynamic process governed by differential equations, oscillatory systems, stochastic fluctuations, and quantum probability. The brain—containing roughly 100 billion neurons and 100 trillion synapses—emerges as the fundamental organ of economic valuation, with synaptic plasticity and circuit feedback shaping how pleasure, fatigue, and effort evolve over time. We present nine core equations that capture the temporal, spatial, and probabilistic structure of hedonic experience, integrating economic constraints such as PC=wL. These models reveal utility as a lived, adaptive, and embodied process, sensitive to consumption, labor, attention, and expectation. The framework offers a unified theory of welfare rooted in neurobiological complexity, enabling a redefinition of human flourishing through the combined lenses of economics and brain science. |
| Date: | 2025–05–16 |
| URL: | https://d.repec.org/n?u=RePEc:cuf:wpaper:753 |