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on Economics of Happiness |
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Issue of 2026–08–10
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Dalila de Rosa (Ministry of Economics and Finance, Rome, Italy); Pierluigi Murro (LUISS University, Rome, Italy); Matteo Rizzolli (LUMSA University, Rome, Italy); Matteo A. Ruberto (SUPSI University, Lugano, Switzerland) |
| Abstract: | The relationship between family and happiness has long been studied, often relying on simple characterizations of family types on one side of the equation and using only one or two measures of wellbeing on the other side. In this paper we articulate both the complexity of family types and the different dimensions of subjective wellbeing. We test whether different family types — single, cohabiting, and married — and different dimensions of family commitment — the presence of children and religious observance — are associated with differences in multiple measures of subjective wellbeing relative to economic conditions, health, family relations, friendships, leisure time, and work, using Italian data from 1993 to 2023. Our findings, complemented by an instrumental variable analysis that addresses selection into family types, show that family commitment — particularly marriage and religious observance — may reflect a causal association with higher satisfaction in health, work, and social connectedness, at the cost of reduced satisfaction with leisure. Parenthood further strengthens health and friendship satisfaction but introduces additional costs in economic and leisure satisfaction that vary across family types. |
| Keywords: | family; marriage; cohabitation; parenthood; religiosity; commitment; subjective wellbeing; multidimensional life satisfaction |
| JEL: | I31 J12 J13 Z12 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:lsa:wphurf:wphurf01 |
| By: | David Frayman; Christian Krekel; Richard Layard; Richard Layard; Sara MacLennan; Isaac Parkes; Janey Tietz |
| Abstract: | Wellbeing cost-benefit analysis requires credible estimates of how much specific life circumstances change subjective wellbeing. This paper documents and contextualises a compendium of 123 such estimates, drawn from 19 domains of life and standardised, wherever possible, onto a common 0â€"10 life-satisfaction scale. Each estimate is rated for causal credibility using the Maryland Scientific Methods Scale, recorded alongside the identification strategy, the controls included, evidence on adaptation, and the full reference. The compendium is intended as a practical resource for analysts conducting WELLBY-based appraisal and social value measurement, and as a map of where the evidence is strong and where it is thin. The full dataset is provided as an accompanying spreadsheet. |
| Keywords: | subjective wellbeing, life satisfaction, WELLBY, cost-benefit analysis, non-market valuation, policy appraisal |
| Date: | 2026–07–22 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepops:75 |
| By: | Blanchflower, David (Dartmouth College); Bryson, Alex (University College London); Lepinteur, Anthony (University of Luxembourg); Piper, Alan (Leeds University Business School) |
| Abstract: | A substantial literature finds poor mental health is hump-shaped with respect to age, whilst subjective wellbeing is U-shaped. Recent cross-sectional studies indicate a change in this relationship driven by the declining mental health of the young. We contribute to this literature by re-examining the age patterns in subjective wellbeing and illbeing for individuals in five European countries (France, Germany, Italy, Spain and Sweden). We do so with fifteen waves of the COME-HERE (CH) panel survey for 2020-2025 plus data from the Global Minds (GM) surveys of 2020-2026 for the same countries. We show that wellbeing rises and illbeing declines in a roughly monotonic fashion with age. This is found both with cross-section data from the CH and GM data, and from longitudinal plots of person fixed effects by age in the CH data. |
| Keywords: | subjective wellbeing, mental health, age, despair, panel data |
| JEL: | I31 I38 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18803 |
| By: | Ricardo da Silva Vieira; Mario Biggeri; Peter Benczur; Robert Costanza; Joseph Eastoe; Tuuli Hirvilammi; Ida Kubiszewski; Matteo Mazziotta; Kenneth Mulder; Taketo Muroya; Kelsey J. OConnor; Francesco Sarracino; Nikos Rigas; Enrico Giovannini; Rutger Hoekstra; Daniel Hopp; Edwin Horlings; Petra Krylova; Michele Melchiorri; Heriberto Tapia; Oscar Smallenbroek |
| Abstract: | Societal goals need to shift from over-reliance on gross domestic product (GDP) to broader aspects of sustainable and inclusive wellbeing (SIW). However, defining SIW and eventually measuring it with a single number is problematic because it involves many subjective and objective contributors that combine in complex, non-linear ways. Conventional approaches either use linear weighted averages or reduce SIW to subjective wellbeing alone. Neither is sufficient. This paper reviews aggregation methods for SIW against nine conditions derived from needs theory and strong sustainability: limited substitutability, penalisation of imbalances, non-linear transformations, respect for environmental ceilings, respect for lower limits, a formative measurement model, no correlation requirement, distributional sensitivity, cross-border spillovers, and intertemporal aggregation. We compare 13 methods, from simple arithmetic means to penalty-based indices, outranking multicriteria, data envelopment analysis, and insights from ecology, neuroscience, and machine learning. Our illustrative example shows that aggregation choices change significantly country rankings. Compensatory methods create similar rankings. No single method satisfies all nine conditions. We conclude that a future SIW composite indicator will require combining methods across levels: non-linear normalisation, non-compensatory aggregation, and measurement-level choices for inclusiveness and spillovers. This paper provides a step towards the headline aggregated indicator advocated by the UN High-Level Expert Group on Beyond GDP. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.08153 |
| By: | Talita Greyling (Centre for Well-being, Artificial Intelligence and Social Impact (C.WAIS) and School of Economics, University of Johannesburg, Johannesburg, South Africa); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Onur Polat (Institute of Informatics, Hacettepe University, Ankara, Turkiye); Stephanie Rossouw (Auckland University of Technology, Social Science & Humanities, Auckland, New Zealand) |
| Abstract: | We analyze the effects of wins and losses of men's and women's cricket, football and rugby teams using a real-time happiness measure derived from tweets over the daily period from January 2020 to June 2023. To prevent omitted-variable bias, we control for a wide range of high-frequency macroeconomic and financial variables. While our primary focus is on South Africa, we compare the results with Australia and New Zealand, where these three sports are equally popular. We use a quantile regression approach to examine the effects of wins and losses across the entire conditional distribution of happiness rather than only at the conditional mean. We find little evidence that wins or losses affect happiness in Australia or New Zealand. In contrast, combined wins across the three sports are associated with statistically significant increases in happiness in South Africa, particularly across the moderately low to high quantiles. While outcomes differ across sports, we do find commonalities across the three countries. Fridays and holidays significantly increase happiness across the entire conditional distributions, whereas new confirmed coronavirus cases and financial market uncertainties negatively impact happiness at certain parts of the conditional distributions. |
| Keywords: | Sports, Happiness, Quantile regressions |
| JEL: | C22 E70 Z2 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202619 |
| By: | Anastasiou, Dimitris; Katsafados, Apostolos; Ongena, Steven; Tzomakas, Christos |
| Abstract: | Building on Gorodnichenko et al. (2023) we propose a novel measure that quantifies the voice sentiment of the Chair of the Federal Reserve press conference responses and examine its impact on the stock price crash risk of U.S. banks. We find that a more positive vocal sentiment, indicative of happiness, significantly reduces banks’ stock price crash risk, whereas negative emotions, such as sadness and anger, amplify it. These effects are economically meaningful and robust across various specifications, alternative crash risk proxies, and endogeneity checks, including an instrumental variables (IV) strategy and reverse causality tests. Additionally, the emotional sentiment has asymmetric effects on stock price crash risk, depending on bank size. Beyond the textual content of monetary policy statements, the emotional delivery of central bank communication plays a critical role in shaping financial stability outcomes, providing empirical evidence for the theoretical channels of uncertainty, systemic risk, and investor sentiment. |
| Keywords: | Financial stability |
| JEL: | G01 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20308 |