Beyond happiness and satisfaction: Toward well-being indices based on stated preference

Daniel J. Benjamin, Ori Heffetz, Miles S. Kimball, Nichole Szembrot

Research output: Contribution to journalArticlepeer-review

Abstract

This paper proposes foundations and a methodology for survey- based tracking of well-being. First, we develop a theory in which utility depends on "fundamental aspects" of well-being, measurable with surveys. Second, drawing from psychologists, philosophers, and economists, we compile a comprehensive list of such aspects. Third, we demonstrate our proposed method for estimating the aspects' relative marginal utilities-a necessary input for constructing an individual-level well-being index-by asking ∼4,600 US survey respondents to state their preference between pairs of aspect bundles. We estimate high relative marginal utilities for aspects related to family, health, security, values, freedom, happiness, and life satisfaction. (JEL C43, C83, D12, I 31).

Original languageEnglish
Pages (from-to)2698-2735
Number of pages38
JournalAmerican Economic Review
Volume104
Issue number9
DOIs
StatePublished - 1 Sep 2014
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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