Some Uses of Happiness Data in Economics

Tella, Rafael Di; MacCulloch, Robert

doi:10.1257/089533006776526111

Cited by 889Psychological Well-being and Life SatisfactionQuality of Life MeasurementIncome, Poverty, and Inequality

Some Uses of Happiness Data in Economics

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Tella, Rafael Di, MacCulloch, Robert·2006·Journal of Economic Perspectives

DOI 10.1257/089533006776526111

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Abstract

Happiness research is based on the idea that it is fruitful to study empirical measures of individual welfare. The most common is the answer to a simple well-being question such as “Are you Happy?” Hundreds of thousands of individuals have been asked this question, in many countries and over many years. Researchers have begun to use these data to tackle a variety of important questions in economics. Some require strong assumptions concerning interpersonal comparisons of utility, but others make only mild assumptions in this regard. They range from microeconomic questions, such as the way income and utility are connected, to macroeconomic questions such as the tradeoff between inflation and unemployment, including large areas in political economy. Public policy is another area where progress using happiness data is taking place. Given the central role of utility notions in economic theory, we argue that the use of happiness data in empirical research should be given serious consideration.

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Life satisfaction is a self-reported welfare measure frequently used in economic and policy analysis.
“Life satisfaction is a self-reported welfare measure frequently used in economic and policy analysis (Di Tella and MacCulloch, 2006;Graham and MacLennan, 2020;MacKerron, 2012;Nikolova and Graham, 2022;Otrachshenko et al., 2022).”
From Double-edged sword: persistent effects of Communist regime affiliations on well-being and preferences (2023) · cites this paper as Di Tella and MacCulloch, 2006

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Why Economic Psychology and Behavioral Finances Needs Neurosciences Knowledge to Develop a Strong and General Theory of Economic Decision Making?Preprint
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Authors: Tella, R. D., & MacCulloch, R.
Affiliations: Harvard University (US)
Imperial College London (GB)
ORCID: MacCulloch, Robert
Venue: Journal of Economic Perspectives
Publisher: American Economic Association
Published: 2006-02-01
Volume: 20
Issue: 1
Pages: 25-46
ISSN: 0895-3309 (ISSN-L)
DOI: 10.1257/089533006776526111
OpenAlex: W1977288176
Cited by: 889
References: 101
Citations by year: 2026: 17 · 2025: 12 · 2024: 24 · 2023: 24 · 2022: 20 · 2021: 24 · 2020: 47 · 2019: 40 · 2018: 26 · 2017: 39 · 2016: 49 · 2015: 64 · 2014: 70 · 2013: 70 · 2012: 58
FWCI: 79.51
Type: journal article
Language: en
Open access: bronze
doi.org
Locations: The Journal of Economic Perspectives (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
ResearchSpace (University of Auckland) (submittedVersion, cc-by)
Topics: Social Sciences › Psychology › Social Psychology › Psychological Well-being and Life Satisfaction
Social Sciences › Sociology and Political Science › Quality of Life Measurement
Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
Keywords: subjective well-being, interpersonal utility comparison, Phillips curve, political economy, public policy evaluation, happiness surveys

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Some Uses of Happiness Data in Economics

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