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American Economic Review Vol. 104 No. 9 2014

Beyond Happiness and Satisfaction: Toward Well-Being Indices Based on Stated Preference

Daniel J. Benjamin1; Ori Heffetz2; Miles Kimball3; Nichole Szembrot4

1 Department of Economics, Cornell University, 480 Uris Hall, Ithaca, NY 14853, and NBER (e-mail: ) · 2 Samuel Curtis Johnson Graduate School of Management, Cornell University, 324 Sage Hall, Ithaca, NY 14853, and NBER (e-mail: ) · 3 Department of Economics, University of Michigan, 312 Lorch Hall, Ann Arbor, MI 48109, and NBER (e-mail: ) · 4 Department of Economics, Cornell University, 455 Uris Hall, Ithaca, NY 14853 (e-mail: ).

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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 U.S. 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.

DOI
10.1257/aer.104.9.2698
Volume
104
Issue
9
Pages
2698-2735
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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