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: email@example.com 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 'CESIFO ECONOMIC STUDIES', 2007, 53(1), 42-68.
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: http://papers.tinbergen.nl/07049.pdf File-Format: application/pdf File-Size: 213162 bytes Handle: RePEc:tin:wpaper:20070049