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From Happiness Data to Economic Conclusions

Author

Listed:
  • Daniel J. Benjamin
  • Kristen Cooper
  • Ori Heffetz
  • Miles S. Kimball
Abstract
Happiness data—survey respondents’ self-reported well-being (SWB)—have become increasingly common in economics research, with recent calls to use them in policymaking. Researchers have used SWB data in novel ways, for example to learn about welfare or preferences when choice data are unavailable or difficult to interpret. Focusing on leading examples of this pioneering research, the first part of this review uses a simple theoretical framework to reverse-engineer some of the crucial assumptions that underlie existing applications. The second part discusses evidence bearing on these assumptions and provides practical advice to the agencies and institutions that generate SWB data, the researchers who use them, and the policymakers who may use the resulting research. While we advocate creative uses of SWB data in economics, we caution that their use in policy will likely require both additional data collection and further research to better understand the data.

Suggested Citation

  • Daniel J. Benjamin & Kristen Cooper & Ori Heffetz & Miles S. Kimball, 2023. "From Happiness Data to Economic Conclusions," NBER Working Papers 31727, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31727
    Note: AG EH LS PE
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    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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