Recent developments in the economics of happiness [Research Reviews]

Recommended readings (Machine generated): Alesina, Alberto, Rafael Di Tella and Robert MacCulloch (2004), 'Inequality and Happiness: Are Europeans and Americans Different?', Journal of Public Economics, 88, 2009-42. -- Ambrey, Christopher L. and Christopher M. Fleming (2011), 'Valuing...

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Bibliographic Details
Main Author: Frey, Bruno S.
Other Authors: Stutzer, Alois
Format: eBook
Published: Cheltenham Edward Elgar Pub. Ltd 2013
Series:Elgar research reviews in economics
Online Access:
Collection: Edward Elgar eBook Archive - Collection details see MPG.ReNa
Summary:Recommended readings (Machine generated): Alesina, Alberto, Rafael Di Tella and Robert MacCulloch (2004), 'Inequality and Happiness: Are Europeans and Americans Different?', Journal of Public Economics, 88, 2009-42. -- Ambrey, Christopher L. and Christopher M. Fleming (2011), 'Valuing Scenic Amenity Using Life Satisfaction Data', Ecological Economics, 72, 106-15. -- Baetschmann, Gregori, Kevin E. Staub and Rainer Winkelmann (2011), 'Consistent Estimation of the Fixed Effects Ordered Logit Model', IZA Discussion Paper No. 5443, available at: -- Bartolini, Stefano (2012), 'Sociability Predicts Happiness in Nations: Evidence from Macro and Micro Data', forthcoming in Stefano Bartolini (ed), Policies for Happiness, Oxford: Oxford University Press. -- Booth, Philip (ed) (2012), ... and the Pursuit of Happiness: Wellbeing and the Role of Government, London: Institute of Economic Affairs. --
van Praag, Bernard M.S. and Ada Ferrer-i-Carbonell (2004), Happiness Quantified - A Satisfaction Calculus Approach, Oxford: Oxford University Press. -- Sarracino, Francesco (2010), 'Social Capital and Subjective Well-Being Trends: Comparing 11 Western European Countries', Journal of Socio- Economics, 39 (4), 482-517
John F. Helliwell and Robert D. Putnam (2004), 'The Social Context of Well-Being', Philosophical Transactions of the Royal Society of London, Series B. Biological Sciences, 359 (1449), September, 1435-46 -- Leonardo Becchetti, Alessandra Pelloni and Fiammetta Rossetti (2008), 'Relational Goods, Sociability, and Happiness', Kyklos, 61 (3), August, 343-63 -- Angus Deaton (2008), 'Income, Health, and Well-Being Around the World: Evidence from the Gallup World Poll', Journal of Economic Perspectives, 22 (2), Spring, 53-72
Betsey Stevenson and Justin Wolfers (2008), 'Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox', Brookings Papers on Economic Activity, 39 (1), Spring, 1-87 -- Richard A. Easterlin, Laura Angelescu McVey, Malgorzata Switek, Onnicha Sawangfa and Jacqueline Smith Zweig (2010), 'The Happiness-Income Paradox Revisited', Proceedings of the National Academy of Sciences, 107 (52), December, 22463-68 -- Erzo F.P. Luttmer (2005), 'Neighbors as Negatives: Relative Earnings and Well-Being', Quarterly Journal of Economics, 120 (3), August, 963-1002 -- Alois Stutzer (2004), 'The Role of Income Aspirations in Individual Happiness', Journal of Economic Behavior and Organization, 54 (1), May, 89-109 -- Rafael Di Tella, Robert J. MacCulloch and Andrew J. Oswald (2003), 'The Macroeconomics of Happiness', Review of Economics and Statistics, 85 (4), November, 809-27 --
Frey, Bruno S., Simon Luechinger and Alois Stutzer (2010), 'The Life Satisfaction Approach to Environmental Valuation', Annual Review of Resource Economics, 2, 139-60. -- Frey, Bruno S. and Alois Stutzer (2002a), Happiness and Economics: How the Economy and Institutions Affect Well-Being, Princeton and Oxford: Princeton University Press. -- Frey, Bruno S. and Alois Stutzer (2012), 'Economic Consequences of Mispredicting Utility', Mimeo: University of Basel. -- Frijters, Paul, David W. Johnston and Michael A. Shields (2011), 'Life Satisfaction Dynamics with Quarterly Life Event Data', Scandinavian Journal of Economics, 113 (1), 190-211. -- Graham, Liam and Andrew Oswald (2010), 'Hedonic Capital, Adaptation and Resilience', Journal of Economic Behavior and Organization, 76 (2), 372-84. --
Bernard M.S. van Praag and Barbara E. Baarsma (2005), 'Using Happiness Surveys to Value Intangibles: The Case of Airport Noise', Economic Journal, 115 (500), January, 224-46 -- Simon Luechinger (2009), 'Valuing Air Quality Using the Life Satisfaction Approach', Economic Journal, 119 (536), March, 482-515 -- Daniel Kahneman and Richard H. Thaler (2006), 'Anomalies: Utility Maximization and Experienced Utility', Journal of Economic Perspectives, 20 (1), Winter, 221-34 -- Andrew E. Clark, Ed Diener, Yannis Georgellis and Richard E. Lucas (2008), 'Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis', Economic Journal, 118 (529), June, F222-F243 -- Luis Rayo and Gary S. Becker (2007), 'Evolutionary Efficiency and Happiness', Journal of Political Economy, 115 (2), April, 302-37 -- Richard Layard (2006), 'Happiness and Public Policy: A Challenge to the Profession', Economic Journal, 116 (510), March, C24-C33 -- Bruno S. Frey and Alois Stutzer (2012), 'The Use of Happiness Research for Public Policy', Social Choice and Welfare, 38 (4), April, 659-74
Knabe, Andreas and Steffen Rätzel (2011), 'Scarring or Scaring? The Psychological Impact of Past Unemployment and Future Unemployment Risk', Economica, 78 (310), 283-93. -- Knabe, Andreas, Steffen Rätzel, Ronnie Schöb and Joachim Weimann (2010), 'Dissatisfied with Life but Having a Good Day: Time-Use and Well-Being of the Unemployed', Economic Journal, 120 (547), 867-89. -- Knight, John and Ramani Gunatilaka (2012), 'Income, Aspiration and the Hedonic Treadmill in a Poor Society', Journal of Economic Behavior and Organization, 82 (1), 67-81. -- Krueger, Alan B. (ed) (2009), Measuring the Subjective Well-Being of Nations: National Accounts of Time Use and Well-Being, Chicago: University of Chicago Press. -- Krueger, Alan B. and David A. Schkade (2008), 'The Reliability of Subjective Well-Being Measures', Journal of Public Economics, 92 (8-9), 1833-45. -- Layard, Richard (2005), Happiness: Lessons from a New Science, New York: Penguin. --
What makes people happy in life? This crucial question has the potential to shake up economics. In recent years, dissatisfaction with the understanding of welfare in economics and new opportunities for empirical study of people's subjective well-being have spurred impressive and stimulating new research into the 'dismal' science, resulting in increased interest in the economics of happiness. Professor Frey and Professor Stutzer have selected contributions by leading scholars which offer a wide-ranging overview of recent developments. These include an exploration of the economic determinants of happiness, the importance of social capital and health for well-being and the new life satisfaction approach to valuing public goods. Work on utility misprediction and adaptation challenges the existing fundamentals of economics, and the role of happiness research in public policy is investigated from different perspectives
Oreopoulos, Philip and Kjell Salvanes (2011), 'Priceless: The Nonpecuniary Benefits of Schooling', Journal of Economic Perspectives, 25 (1), 159-84. -- Oswald, Andrew and Nattavudh Powdthavee (2008), 'Does Happiness Adapt? A Longitudinal Study of Disability with Implications for Economists and Judges', Journal of Public Economics, 92 (5-6), 1061-77. -- Oswald, Andrew and Steve Wu (2010), 'Objective Confirmation of Subjective Measures of Human Well-being: Evidence from the USA', Science, 327 (5965), 576-79. -- Pischke, Jorn-Steffen (2011), 'Money and Happiness: Evidence from the Industry Wage Structure', NBER Working Papers No. 17056, available at: -- Powdthavee, Nattavudh (2008), 'Putting a Price Tag on Friends, Relatives, and Neighbours: Using Surveys of Life Satisfaction to Value Social Relationships', Journal of Socio-Economics, 37 (4), 1459-80. --
Kahneman, Daniel, Alan Krueger, David Schkade, Norbert Schwarz and Arthur Stone (2004), 'A Survey Method for Characterizing Daily Life Experience: The Day Reconstruction Method', Science, 306 (5702), 1776-80. -- Kahneman, Daniel and Robert Sugden (2005), 'Experienced Utility as a Standard of Policy Evaluation', Environmental and Resource Economics, 32 (1), 161-81. -- Kassenboehmer, Sonja C. and John P. Haisken-DeNew (2009), 'You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction', Economic Journal, 119 (536), 448-62
Dolan, Paul and Robert Metcalfe (2008), 'Comparing Willingness-to-Pay and Subjective Well-Being in the Context of Non-Market Goods', Centre for Economic Performance Discussion Paper No. 0890, available at: -- Dolan, Paul, Tessa Peasgood and Mathew White (2008), 'Do We Really Know What Makes Us Happy? A Review of the Economic Literature on the Factors Associated with Subjective Well-Being', Journal of Economic Psychology, 29 (1), 94-122. -- Easterlin, Richard A. (ed) (2002), Happiness in Economics, Cheltenham: Edward Elgar. -- Ferrer-i-Carbonell, Ada and Paul Frijters (2004), 'How Important is Methodology for the Estimates of the Determinants of Happiness?', Economic Journal, 114 (497), 641-59
Finkelstein, Amy, Erzo F.P. Luttmer and Matthew J. Notowidigdo (2013), 'What Good is Wealth without Health? The Effect of Health on the Marginal Utility of Consumption', forthcoming in the Journal of the European Economic Association. -- Frank, Robert H. (2004), 'How not to Buy Happiness', Daedalus, 133 (2), 69-79. -- Freeman, A. Myrick, III (2003), The Measurement of Environmental and Resource Values: Theory and Methods, Washington, DC: Resources for the Future. -- Frey, Bruno S. (2008), Happiness: A Revolution in Economics, Cambridge, MA: MIT Press. -- Frey, Bruno S. and Matthias Benz (2008), 'Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy', Economica, 75 (298), 362-83. -- Frey, Bruno S., Simon Luechinger and Alois Stutzer (2009), 'The Life Satisfaction Approach to the Value of Public Goods: The Case of Terrorism', Public Choice, 138 (3-4), 317-45. --
Clark, Andrew, Yannis Georgellis and Peter Sanfey (2001), 'Scarring: The Psychological Impact of Past Unemployment', Economica, 68 (270), 221-41. -- Clark, Andrew and Claudia Senik (2010), 'Who Compares to Whom? The Anatomy of Income Comparisons in Europe', Economic Journal, 120 (544), 573-94. -- Diener, Ed and Micaela Y. Chan (2011), 'Happy People Live Longer: Subjective Well-Being Contributes to Health and Longevity', Applied Psychology: Health and Well-Being, 3 (1), 1-43. -- Diener, Ed, John F. Helliwell and Daniel Kahneman (2010), International Differences in Well-Being, New York: Oxford University Press. -- Di Tella, Rafael and Robert MacCulloch (2006), 'Some Uses of Happiness Data in Economics', Journal of Economic Perspectives, 20 (1), 25-46. --
Green, Francis (2011), 'Unpacking the Misery Multiplier: How Employability Modifies the Impacts of Unemployment and Job Insecurity on Life Satisfaction and Mental Health', Journal of Health Economics, 30 (2), 265-76. -- Helliwell, John and Christopher Barrington-Leigh (2010), 'Measuring and Understanding Subjective Well-Being', Canadian Journal of Economics, 43 (3), 729-53. -- Helliwell, John F., Richard Layard and Jeffrey Sachs (eds) (2012), World Happiness Report, New York: The Earth Institute, Columbia University. -- Hsee, Christopher, Yuval Rottenstreich and Alois Stutzer (2012), 'Suboptimal Choices and the Need for Experienced Individual Well-Being in Economic Analysis', IZA Discussion Paper No. 6346, available at: -- Ifcher, John and Homa Zarghamee (2011), 'Happiness and Time Preference: The Effect of Positive Affect in a Random-Assignment Experiment', American Economic Review, 101 (7), 3109-129. --
Bruni, Luigino and Pier Luigi Porta (eds) (2005), Economics and Happiness: Framing the Analysis, Oxford: Oxford University Press. -- Bruni, Luigino and Pier Luigi Porta (eds) (2007), Handbook on the Economics of Happiness, Cheltenham, UK: Edward Elgar. -- Carroll, Nick, Paul Frijters and Michael A. Shields (2009), 'Quantifying the Costs of Drought: New Evidence from Life Satisfaction Data', Journal of Population Economics, 22 (2), 445-61. -- Cattaneo, Matias D., Sebastian Galiani, Paul J. Gertler, Sebastian Martinez and Rocio Titiunik (2009), 'Housing, Health, and Happiness', American Economic Journal: Economic Policy, 1 (1), 75-105. -- Clark, Andrew E. (2003), 'Unemployment as a Social Norm: Psychological Evidence from Panel Data', Journal of Labor Economics, 21 (2), 323-51. -- Clark, Andrew E. (2006), 'A Note on Unhappiness and Unemployment Duration', Applied Economics Quarterly, 52 (4), 291-308. --
Layard, Richard, Stephen Nickell and Guy Mayraz (2008), 'The Marginal Utility of Income', Journal of Public Economics, 92 (8-9), 1846-57. -- Loewenstein, George, Ted O'Donoghue and Matthew Rabin (2003), 'Projection Bias in Predicting Future Utility', Quarterly Journal of Economics, 118 (4), 1209-48. -- Luechinger, Simon, Stephan Meier and Alois Stutzer (2010), 'Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and the Private Sector', Journal of Human Resources, 45 (4), 998-1045. -- Luechinger, Simon and Paul A. Raschky (2009), 'Valuing Flood Disasters Using the Life Satisfaction Approach', Journal of Public Economics, 93 (3-4), 620-33. -- MacKerron, George and Susana Mourato (2009), 'Life Satisfaction and Air Quality in London', Ecological Economics, 68 (5), 1441-53. -- Meier, Stephan and Alois Stutzer (2008), 'Is Volunteering Rewarding in Itself?', Economica, 75 (297), 39-59. --
Welsch, Heinz (2006), 'Environment and Happiness: Valuation of Air Pollution Using Life Satisfaction Data', Ecological Economics, 58 (4), 801-13. -- Wolfers, Justin (2003), 'Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being', International Finance, 6 (1), 1-26. -- Bruno S. Frey and Alois Stutzer (2002), 'What Can Economists Learn from Happiness Research?', Journal of Economic Literature, 40 (2), June, 402-35 -- Daniel Kahneman and Alan B. Krueger (2006), 'Developments in the Measurement of Subjective Well-Being', Journal of Economic Perspectives, 20 (1), Winter, 3-24 -- Mark Kelman (2005), 'Hedonic Psychology and the Ambiguities of "Welfare', Philosophy and Public Affairs, 33 (4), September, 391-412 -- Andrew E. Clark, Paul Frijters and Michael A. Shields (2008), 'Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles', Journal of Economic Literature, 46 (1), March, 95-144 --
Stiglitz, Joseph E. et al. (2009), 'Report by the Commission on the Measurement of Economic Performance and Social Progress', available at: -- Stone, Arthur, Saul Shiffman and Marten DeVries (1999), 'Ecological Momentary Assessment', in Daniel Kahneman, Ed Diener and Norbert Schwarz (eds), Well-Being: The Foundations of Hedonic Psychology, New York, NY: Russell Sage Foundation, 26-39. -- Stutzer, Alois and Bruno S. Frey (2008), 'Stress that Doesn't Pay: The Commuting Paradox', Scandinavian Journal of Economics, 110 (2), 339-66. -- Stutzer, Alois and Bruno S. Frey (2010), 'Recent Advances in the Economics of Individual Subjective Well-Being', Social Research: An International Quarterly, 77 (2), 679-714. -- Stutzer, Alois and Rafael Lalive (2004), 'The Role of Social Work Norms in Job Searching and Subjective Well-Being', Journal of the European Economic Association, 2 (4), 696-719. --
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