Work

Beyond Happiness and Satisfaction: Toward Well-Being Indices Based on Stated Preference

Year: 2014

Type: article

Abstract: This paper proposes foundations and a methodology for survey-based tracking of well-being. First, we develop a theory in which utility depends on "fundamental aspects" of well-being, measurable with surveys. Second, drawing from psychologists, philosophers, and economists, we compile a comprehensive list of such aspects. Third, we demonstrate our proposed method for estimating the aspects' relative marginal utilities-a necessary input for constructing an individual-level well-being index-by asking ~4,600 U.S. survey respondents to state their preference between pairs of aspect bundles. We estimate high relative marginal utilities for aspects related to family, health, security, values, freedom, happiness, and life satisfaction.

Source: American Economic Review

DOI: 10.1257/aer.104.9.2698

Authors: Daniel J. Benjamin, Ori Heffetz, Miles S. Kimball, Nichole Szembrot

Institutions: National Bureau of Economic Research, Cornell University, University of Michigan

Language: English

Topic: Psychological Well-being and Life Satisfaction

Subfield: Social Psychology

Field: Psychology

Domain: Social Sciences

Open Access status: green

Funder: National Institute on Aging

Awards: NBER Training Program in Aging and Health Economics, Using the Dynamics of Subjective Well-Being to Measure the Import of Events