Diener, E., Suh, E. M., Lucas, R. E., &Smith, H. L. (1999). Subjective well-being: Three decades of progress. Psychological bulletin, 125(2), 276.

W. Wilson’s (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of “happiness.” A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB. E. Diener’s (1984) review placed greater emphasis on theories that stressed psychological factors. In the current article, the authors review current evidence for Wilson’s conclusions and discuss modern theories of SWB that stress dispositional influences, adaptation, goals, and coping strategies. The next steps in the evolution of the field are to comprehend the interaction of psychological factors with life circumstances in producing SWB, to understand the causal pathways leading to happiness, understand the processes underlying adaptation to events, and develop theories that explain why certain variables differentially influence the different components of SWB (life satisfaction, pleasant affect, and unpleasant affect).

 

 

Diener, E., Suh, E. M., Lucas, R. E., &Smith, H. L. (1999). Subjective well-being: Three decades of progress. Psychological bulletin, 125(2), 276.

https://doi.org/10.1037/0033-2909.125.2.276

 

Frey, B. S., &Stutzer, A. (2002). What can economists learn from happiness research?. Journal of Economic literature, 40(2), 402-435.

Abstract

In recent years, there has been a steadily increasing interest on the part of economists in happiness research. We argue that reported subjective well-being is a satisfactory empirical approximation to individual utility and that happiness research is able to contribute important insights for economics. We report how the economic variables income, unemployment and inflation affect happiness as well as how institutional factors, in particular the type of democracy and the extent of government decentralization, systematically influence how satisfied individuals are with their life. We discuss some of the consequences for economic policy and for economic theory.

 

 

Frey, B. S., &Stutzer, A. (2002). What can economists learn from happiness research?. Journal of Economic literature, 40(2), 402-435.

DOI: 10.1257/002205102320161320

 

Frey, B. S., &Stutzer, A. (2005). Happiness research: State and prospects. Review of social economy, 63(2), 207-228.

This paper intends to provide an evaluation of where the economic research on happiness stands and in which interesting directions it might develop. First, the current state of the research on happiness in economics is briefly discussed. We emphasize the potential of happiness research in testing competing theories of individual behavior. Second, the crucial issue of causality is taken up illustrating it for a particular case, namely whether marriage makes people happy or whether happy people get married. Third, happiness research is taken up as a new approach to measuring utility in the context of cost-benefit analysis.

 

 

Frey, B. S., &Stutzer, A. (2005). Happiness research: State and prospects. Review of social economy, 63(2), 207-228.

https://doi.org/10.1080/00346760500130366

 

Blanchflower, D. G., &Oswald, A. J. (2004). Money, sex and happiness: An empirical study. Scandinavian Journal of Economics, 106(3), 393-415.

The links between income, sexual behavior and reported happiness are studied using recent data on a sample of 16,000 adult Americans. The paper finds that sexual activity enters strongly positively in happiness equations. Higher income does not buy more sex or more sexual partners. Married people have more sex than those who are single, divorced, widowed or separated. The happiness‐maximizing number of sexual partners in the previous year is calculated to be 1. Highly educated females tend to have fewer sexual partners. Homosexuality has no statistically significant effect on happiness.

 

 

Blanchflower, D. G., &Oswald, A. J. (2004). Money, sex and happiness: An empirical study. Scandinavian Journal of Economics, 106(3), 393-415.

https://doi.org/10.1111/j.0347-0520.2004.00369.x

 

Helliwell, J. F. (2003). How& #39;s life? Combining individual and national variables to explain subjective well-being. Economic modelling, 20(2), 331-360.

This paper attempts to explain international trends and differences in subjective well-being over the final fifth of the twentieth century. This is done in several stages. First there is a brief review of some reasons for giving a central role to subjective measures of well-being. This is followed by sections containing a survey of earlier empirical studies, a deion of the main variables used in this study, a report of results and tests, discussion of the links among social capital, education and well-being, and concluding comments. The main innovation of the paper, relative to earlier studies of subjective well-being, lies in its use of large international samples of individual respondents, thus permitting the simultaneous identification of individual-level and societal-level determinants of well-being. This is particularly useful in identifying direct and indirect linkages between social capital and well-being.

 

 

Helliwell, J. F. (2003). How’s life? Combining individual and national variables to explain subjective well-being. Economic modelling, 20(2), 331-360.

https://doi.org/10.1016/S0264-9993(02)00057-3

 

 

Diener, E. (1984). Subjective well-being. Psychological bulletin, 95(3), 542.

Reviews the literature since 1967 on subjective well-being (SWB [including happiness, life satisfaction, and positive affect]) in 3 areas: measurement, causal factors, and theory. Most measures of SWB correlate moderately with each other and have adequate temporal reliability and internal consistency; the global concept of happiness is being replaced with more specific and well-defined concepts, and measuring instruments are being developed with theoretical advances; multi-item scales are promising but need adequate testing. SWB is probably determined by a large number of factors that can be conceptualized at several levels of analysis, and it may be unrealistic to hope that a few variables will be of overwhelming importance. Several psychological theories related to happiness have been proposed; they include telic, pleasure and pain, activity, top–down vs bottom–up, associanistic, and judgment theories. It is suggested that there is a great need to more closely connect theory and research.

 

 

Diener, E. (1984). Subjective well-being. Psychological Bulletin, 95(3), 542-575.

http://dx.doi.org/10.1037/0033-2909.95.3.542  

Clark, A. E., &Oswald, A. J. (1996). Satisfaction and comparison income. Journal of public economics, 61(3), 359-381.

This paper attempts to test the hypothesis that utility depends on income relative to a ‘comparison’ or reference level. Using data on 5,000 British workers, it provides two findings. First, workers’ reported satisfaction levels are shown to be inversely related to their comparison wage rates. Second, holding income constant, satisfaction levels are shown to be strongly declining in the level of education. More generally, the paper tries to help begin the task of constructing an economics of job satisfaction.

 

 

Clark, A. E., &Oswald, A. J. (1996). Satisfaction and comparison income. Journal of public economics, 61(3), 359-381.

https://doi.org/10.1016/0047-2727(95)01564-7

 

 

Kaufman, B. E. (1999). Emotional arousal as a source of bounded rationality. Journal of Economic Behavior &Organization, 38(2), 135-144.

This paper proposes an alternative psychological explanation for bounded rationality. According to Herbert Simon, bounded rationality arises from human cognitive limitations. Following the suggestion of institutional economist John R. Commons, I argue that extremes in emotional arousal also contribute to bounded rationality. This idea is formalized and developed using the Yerkes–Dodson law from psychology. Examples from the popular press and the academic literatures of law, management and economics are presented to illustrate the impact of this type of bounded rationality on human behavior.

 

 

Kaufman, B. E. (1999). Emotional arousal as a source of bounded rationality. Journal of Economic Behavior &Organization, 38(2), 135-144.

https://doi.org/10.1016/S0167-2681(99)00002-5