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• W2994605623 abstract "Based on these insights econom-ics is likely to change considerably in the future.Standard economics is being transformed in threerespects:(1) Happiness and life satisfaction are measurable,which allows us to proxy the concepts of utility orindividual welfare in a satisfactory way.What wasconsidered a revolution in the 1930s, when SirJohn Hicks, Lord Lionel Robbins and othersclaimed that utility cannot and need not be mea-sured, has been reversed.Measuring happiness has allowed us to extendeconomic theory into various new areas. For in-stance, it is now possible to identify biases in deci-sion-making. Standard economic theory based onthe concept of “revealed preference” equates theutility expected when deciding between consump-tion bundles with the utility actually experiencedwhen consuming them. Happiness research showsthat individuals make biased decisions whenchoosing between alternatives. As a consequenceof these biases in judgment, they find themselvesless satisfied with life than they could be accord-ing to their own evaluation (see, e.g., Kahnemanand Thaler 2006; Stutzer and Frey 2007).(2) The economic analysis of subjective well-beingteaches us how human beings value goods and ser-vices, as well as how they value social conditions.The effects of income, unemployment and othereconomic, social and genetic factors on well-beingare empirically identified. The new insights in-clude non-material values such as the value of au-tonomy and social relations with friends and fam-ily.Economic activity is seen as contributing to hu-man happiness. This does not exclude that othergoals such as loyalty, responsibility, self-esteem,freedom or personal development also matter.(3) Economic happiness research is relevant at twolevels of policy, at the constitutional level wherethe rules of the game are determined and at thepost-constitutional level where political deci-sions are taken within these rules. Happiness re-search shows that democracy and federalism arefundamental institutions that raise people’s lifesatisfaction. In the current politico-economic pro-cess,the life satisfaction approach makes it possi-ble to capture individuals’ preferences and indi-viduals’ welfare for public goods in a novel way.Aggregate happiness indicators may also becomea relevant input in the post-constitutional politicaldiscourse." @default.
• W2994605623 created "2019-12-13" @default.
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• W2994605623 date "2010-01-01" @default.
• W2994605623 modified "2023-09-23" @default.
• W2994605623 title "HAPPINESS :A NEW APPROACH IN ECONOMICS" @default.
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