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Slesnick, D. T. (1998). Empirical approaches to the measurement of welfare. Journal of Economic Literature, 36(4), 2108-2165.
Osterloh, M., Frost, J., &Frey, B. S. (2002). The dynamics of motivation in new organizational forms. International Journal of the Economics of Business, 9(1), 61-77.
This paper discusses the impact of the dynamics of motivation on new organizational forms that are suited to forge value-creating knowledge transfers in teams and between organizational units and functions. Our aim is to develop the management of motivation as a source of distinctive firm competences. We argue that motivation is an endogenous variable and introduce it as a crucial link into the theory of the firm. Balancing intrinsic and extrinsic motivation helps to overcome social dilemmas in firms that are not solvable by hierarchical authority. Integrating the dynamics of motivation is a step to a more comprehensive theory of organization. It links organizational economics to the knowledge-based perspective.
Osterloh, M., Frost, J., &Frey, B. S. (2002). The dynamics of motivation in new organizational forms. International Journal of the Economics of Business, 9(1), 61-77.
Van Praag, B. M. (1991). Ordinal and cardinal utility: an integration of the two dimensions of the welfare concept. Journal of econometrics, 50(1-2), 69-89.
In this paper we distinguish two ‘dimensions’ of the utility concept. The first is the ‘behavioral’ dimension, described by indifference curves in a commodity space. It may be estimated by observing consumer purchase behavior. The second dimension is the ‘welfare’ dimension, i.e., the cardinal utility levels corresponding to indifference curves. The second dimension may be estimated by means of the income evaluation approach.
We deal with methodological issues and show by means of empirical evidence the validity of the income evaluation approach. In the same time we propose some major modifications of the method. Secondly, we show how the two dimensions may be combined. This is illustrated with respect to the AIDS and the Translog model. In this way we find how price and income variations influence measured individual welfare.
Van Praag, B. M. (1991). Ordinal and cardinal utility: an integration of the two dimensions of the welfare concept. Journal of econometrics, 50(1-2), 69-89.
https://doi.org/10.1016/0304-4076(91)90090-Z
Brickman, P., Coates, D., &Janoff-Bulman, R. (1978). Lottery winners and accident victims: Is happiness relative?
Adaptation level theory suggests that both contrast and habituation will operate to prevent the winning of a fortune from elevating happiness as much as might be expected. Contrast with the peak experience of winning should lessen the impact of ordinary pleasures, while habituation should eventually reduce the value of new pleasures made possible by winning. Study 1 compared a sample of 22 major lottery winners with 22 controls and also with a group of 29 paralyzed accident victims who had been previously interviewed. As predicted, lottery winners were not happier than controls and took significantly less pleasure from a series of mundane events. Study 2, using 86 Ss who lived close to past lottery winners, indicated that these effects were not due to preexisting differences between people who buy or do not buy lottery tickets or between interviews that made or did not make the lottery salient. Paraplegics also demonstrated a contrast effect, not by enhancing minor pleasures but by idealizing their past, which did not help their present happiness.
Brickman, P., Coates, D., & Janoff-Bulman, R. (1978). Lottery winners and accident victims: Is happiness relative? Journal of Personality and Social Psychology, 36(8), 917-927.
Oswald, A. J., &Powdthavee, N. (2008). Does happiness adapt? A longitudinal study of disability with implications for economists and judges.
This paper is an empirical study of partial hedonic adaptation. It provides longitudinal evidence that people who become disabled go on to exhibit considerable recovery in mental well-being. In fixed-effects equations we estimate the degree of hedonic adaptation at — depending on the severity of the disability — approximately 30% to 50%. Our calculations should be viewed as illustrative; more research, on other data sets, is needed. Nevertheless, we discuss potential implications of our results for economists and the courts.
Oswald, A. J., &Powdthavee, N. (2008). Does happiness adapt? A longitudinal study of disability with implications for economists and judges. Journal of public economics, 92(5-6), 1061-1077.
https://doi.org/10.1016/j.jpubeco.2008.01.002
Comim, F. (2005). Capabilities and happiness: Potential synergies. Review of social economy, 63(2), 161-176.
The paper compares two prominent approaches to assessing Human Well-Being, the Capability Approach and the Subjective Well-Being Approach. It investigates the differences and the similarities between these approaches. An argument is made for exploring the potential synergies between them. Finally, the papers of this special edition are briefly introduced.
Comim, F. (2005). Capabilities and happiness: Potential synergies. Review of social economy, 63(2), 161-176.
https://doi.org/10.1080/00346760500129871
Ryan, R. M., &Deci, E. L. (2001). On happiness and human potentials: A review of research on hedonic and eudaimonic well-being. Annual review of psychology, 52(1), 141-166.
Well-being is a complex construct that concerns optimal experience and functioning. Current research on well-being has been derived from two general perspectives: the hedonic approach, which focuses on happiness and defines well-being in terms of pleasure attainment and pain avoidance; and the eudaimonic approach, which focuses on meaning and self-realization and defines well-being in terms of the degree to which a person is fully functioning. These two views have given rise to different research foci and a body of knowledge that is in some areas divergent and in others complementary. New methodological developments concerning multilevel modeling and construct comparisons are also allowing researchers to formulate new questions for the field. This review considers research from both perspectives concerning the nature of well-being, its antecedents, and its stability across time and culture.
Ryan, R. M., &Deci, E. L. (2001). On happiness and human potentials: A review of research on hedonic and eudaimonic well-being. Annual review of psychology, 52(1), 141-166.
https://doi.org/10.1146/annurev.psych.52.1.141
Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all?. Journal of Economic Behavior &Organization, 27(1), 35-47.
Today, as in the past, within a country at a given time those with higher incomes are, on average, happier. However, raising the incomes of all does not increase the happiness of all. This is because the material norms on which judgments of well-being are based increase in the same proportion as the actual income of the society. These conclusions are suggested by data on reported happiness, material norms, and income collected in surveys in a number of countries over the past half century.
Easterlin, R. A. (1995). Will raising the incomes of all increase the happiness of all?. Journal of Economic Behavior &Organization, 27(1), 35-47.
https://doi.org/10.1016/0167-2681(95)00003-B
Easterlin, R. A. (2001). Income and happiness: Towards a unified theory. The economic journal, 111(473), 465-484.
Material aspirations are initially fairly similar among income groups; consequently more income brings greater happiness. Over the life cycle, however, aspirations grow along with income, and undercut the favourable effect of income growth on happiness, although the cross‐sectional happiness‐income difference persists. People think they were less happy in the past and will be happier in the future, because they project current aspirations to be the same throughout the life cycle, while income grows. But since aspirations actually grow along with income, experienced happiness is systematically different from projected happiness. Consequently, choices turn out to be based on false expectations.
Easterlin, R. A. (2001). Income and happiness: Towards a unified theory. The economic journal, 111(473), 465-484.
https://doi.org/10.1111/1468-0297.00646
Vanberg, V. J. (2005). Market and state: the perspective of constitutional political economy. Journal of Institutional Economics, 1(1), 23-49.
The paper approaches the ‘market versus state’ issue from the perspective of constitutional political economy, a research program that has been advanced as a principal alternative to traditional welfare economics and its perspective on the relation between market and state. Constitutional political economy looks at market and state as different kinds of social arenas in which people may realize mutual gains from voluntary exchange and cooperation. The working properties of these arenas depend on their respective constitutions, i.e. the rules of the game that define the constraints under which individuals are allowed, in either arena, to pursue their interests. It is argued that ‘improving’ markets means to adopt and to maintain an economic constitution that enhances consumer sovereignty, and that ‘improvement’ in the political arena means to adopt and to maintain constitutional rules that enhance citizen sovereignty.
Vanberg, V. J. (2005). Market and state: the perspective of constitutional political economy. Journal of Institutional Economics, 1(1), 23-49.
https://doi.org/10.1017/S1744137405000032