Measuring subjective wellbeing: recommendations on measures for use by national governments

Governments around the world are now beginning to seriously consider the use of measures of subjective wellbeing (SWB) – ratings of thoughts and feelings about life – for monitoring progress and for informing and appraising public policy. The mental state account of wellbeing upon which SWB measures are based can provide useful additional information about who is doing well and badly in life when compared to that provided by the objective list and preference satisfaction accounts. It may be particularly useful when deciding how best to allocate scarce resources, where it is desirable to express the benefits of intervention in a single metric that can be compared to the costs of intervention. There are three main concepts of SWB in the literature – evaluation (life satisfaction), experience (momentary mood) and eudemonia (purpose) – and policy-makers should seek to measure all three, at least for the purposes of monitoring progress. There are some major challenges to the use of SWB measures. Two related and well-rehearsed issues are the effects of expectations and adaptation on ratings. The degree to which we should allow wellbeing to vary according to expectations and adaptation are vexing moral problems but information on SWB can highlight what difference allowing for these considerations would have in practice (e.g. in informing prioiritisation decisions), which can then be fed into the normative debate. There are also questions about precisely what attention should be drawn to in SWB questions and how to capture the ratings of those least inclined to take part in surveys, but these can be addressed through more widespread use of SWB. We also provide some concrete recommendations about precisely what questions should be asked in large-scale surveys, and these recommendations have been taken up by the Office of National Statistics in the UK and are being looked at closely by the OECD

Comparing Willingness-to-Pay and Subjective Well-Being in the Context of Non-Market Goods

In order to value non-market goods, economists estimate individuals' willingness to pay (WTP) for these goods using revealed or stated preference methods. We compare these conventional approaches with subjective well-being (SWB), which is based on individuals' ratings of their happiness or life satisfaction rather than on their preferences. In the context of a quasi- experiment in urban regeneration, we find that monetary estimates from SWB data are significantly higher than from revealed and stated preference data. Stigma in revealed preferences, mental accounting in stated preferences and unspecified duration in SWB ratings might explain some of the difference between the valuation methods.willingness to pay, preferences, life satisfaction, subjective well-being, nonmarketgoods

Valuing changes in utility for non-market outcomes: Experiences alongside preferences

The current practice in economics is to allocate resources on the basis of our preferences as they are expressed in real or hypothetical markets. Our preferences suffer from a number of problems, however, especially when we value non-market goods, such as the environment or health. An alternative way to value non-market goods is through our experiences, or subjective well-being (SWB). SWB is based on our subjective reports of we think and feel about life. This thesis shows how the values of non-market goods may differ according to whether preferences or SWB are used. There are a number of problems with using SWB as an alternative method of valuation but, overall, this thesis concludes that SWB provides a promising way of valuing non-market goods

Equilibrium Conditions for the Floating of Multiple Interfacial Objects

We study the effect of interactions between objects floating at fluid interfaces, for the case in which the objects are primarily supported by surface tension. We give conditions on the density and size of these objects for equilibrium to be possible and show that two objects that float when well-separated may sink as the separation between the objects is decreased. Finally, we examine the equilbrium of a raft of strips floating at an interface, and find that rafts of sufficiently low density may have infinite spatial extent, but that above a critical raft density, all rafts sink if they are sufficiently large. We compare our numerical and asymptotic results with some simple table-top experiments, and find good quantitative agreement.Comment: 10 pages, 7 figure

Electing Happiness: Does Happiness Effect Voting and do Elections Affect Happiness

What causes us to vote and what do we get out of it? We approach these questions using data on voting and subjective well-being (SWB) from a large household panel dataset in the UK. We find some evidence that SWB can affect voting intention but no evidence that the results of three recent elections have any effect on SWB.Voting, life satisfaction, subjective wellbeing

Student effort and educational attainment: Using the England football team to identify the education production function.

We use a sharp, exogenous and repeated change in the value of leisure to identify the impact of student effort on educational achievement. The treatment arises from the partial overlap of the world’s major international football tournaments with the exam period in England. Our data enable a clean difference-in-difference design. Performance is measured using the high-stakes tests that all students take at the end of compulsory schooling. We find a strongly significant effect: the average impact of a fall in effort is 0.12 SDs of student performance, significantly larger for male and disadvantaged students, as high as many educational policies.student effort, educational achievement, schools

Destruction and distress: using a quasi-experiment to show the effects of the September 11 attacks on subjective well-being in the UK

Using a longitudinal household panel dataset in the United Kingdom, where most interviews are conducted in September each year, we are able to show that the attacks of September 11 resulted in lower levels of subjective well-being for those interviewed after that date in 2001 compared to those interviewed before it. This quasi-experiment provides one of the first examples of the impact of a terrorist attack in one country on well-being in another country. We value this effect through a cost of illness approach, which is estimated to be between £170 and £380 million.terrorism; September 11; subjective well-being.

Measuring Subjective Wellbeing for Public Policy: Recommendations on Measures

The measurement of wellbeing is central to public policy. There are three uses for any measure: 1) monitoring progress; 2) informing policy design; and 3) policy appraisal. There has been increasing interest in the UK and around the world in using measures of subjective wellbeing (SWB) at each of these levels. There is much less clarity about precisely what measures of SWB should be used. We distinguish between three broad types of SWB measure: 1) evaluation (global assessments); 2) experience (feelings over short periods of time); and 3) 'eudemonic' (reports of purpose and meaning, and worthwhile things in life).

A Step towards Valuing Utility the Marginal and Cardinal Way

Income has a direct impact on our utility as well as an indirect impact through the goods, services and life events it allows us to purchase. The indirect effect of income is not properly accounted for in existing research that uses measures of cardinal utility for economic analysis. We propose a new approach for appropriately attributing the full effects of income on utility and we show the implications of our approach using a longitudinal dataset that contains reports of subjective wellbeing (SWB). We show that income has a much greater effect on SWB when indirect effects are considered. These results have important implications for how we value the marginal benefits of non-market goods and we explore some of these issues in the papersubjective well-being, utility, happiness, multicollinearity, income, non-market goods