Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2007-06-25
Number: 07-049/3
Author-Name: Bernard M.S. van Praag
Author-Email: b.m.s.vanpraag@uva.nl
Author-Workplace-Name: University of Amsterdam
Title: Perspectives from the Happiness Literature and the Role of New Instruments for Policy Analysis
Abstract: This discussion paper led to a publication in <A HREF="httpss://apps.webofknowledge.com/full_record.do?product=UA&search_mode=GeneralSearch&qid=1&SID=X2NBDLnsMJR3Goz6AkG&page=1&doc=7">'CESIFO ECONOMIC STUDIES'</A>, 2007, 53(1), 42-68.<P>

After having been ignored for a long time by economists, happiness is becoming an object of serious research in 21st century economics. In Section 2 we sketch the present status of happiness economics. In Section 3 we consider the practical applicability of happiness economics, retaining the assumption of ordinal individual utilities. In Section 4 we introduce a cardinal utility concept, which seems to us the natural consequence of the happiness economics methodology. In Section 5 we sketch how this approach can lead to a normative approach to policy problems that is admissible from a positivist point of view. Section 6 concludes.
Classification-JEL: B21;B41;D63;I31;I38
Keywords: Happiness economics; subjective well-being; equivalence scales; economic policy
File-Url: https://papers.tinbergen.nl/07049.pdf
File-Format: application/pdf
File-Size: 213162 bytes
Handle: RePEc:tin:wpaper:20070049