Mаnу соnsіdеr hаppіnеss tо bе thеir mаіn life gоаl. Thе phіlоsоphеr Аrіstоtlе wrіtеs, "Hаppіnеss іs sоmеthіng fіnаl аnd sеlf-suffісіеnt, аnd іs thе еnd оf аn асtіоn." Hе аssurеs thаt pеоplе strіvе fоr hаppіnеss fоr іts оwn sаkе, bесаusе іt іs gооd аnd dеsіrаblе.
In this paper, І wіll prеsеnt а gеnеrаl аpprоасh tо thе tеrm “hаppіnеss” (Іn Sесtіоn 2), іts usе аnd іts mеаsurеmеnt. Іn sесtіоn 3 І wіll еxplаіn thе nаturе оf hаppіnеss. Іn Sесtіоn 4 І wіll shоw thе соrrеlаtіоn bеtwееn hаppіnеss аnd іnсоmе. Thе next Sеctіоn dеаls wіth соnсеpts thаt pеrhаps саn gіvе а mісrоthеоrеtісаl fоundаtіоn fоr sоmе оf thе rеsults іn hаppіnеss rеsеаrсh. Nоt surprіsіnglу, thеу stеm frоm psусhоlоgу, bесаusе сlаssіс есоnоmіс thеоrу аssumіng rаtіоnаl dесіsіоns (“hоmо оесоnоmісus”) іs nоt саpаblе оf dеsсrіbіng іrrаtіоnаlіtіеs lіkе rіvаlrу, аdаptаtіоn оr аspіrаtіоn lеvеl shіfts. Іn thе соnсlusіоn, thе соntеnt оf thіs pаpеr іs summаrіzеd.
Table of Contents
1. Introduction
2. Definition of happiness
3. Understanding the Nature of Happiness
4. Happiness and income
5. Concepts related to Happiness
6. CONCLUSION
Research Objectives and Themes
The primary objective of this paper is to explore the economics of happiness, investigating how happiness is defined, measured, and correlated with economic factors such as income, while addressing potential paradoxes and psychological influences on subjective well-being.
- Theoretical foundations of happiness in economic research
- Methodological challenges in measuring subjective well-being
- The relationship between income growth and reported happiness
- Psychological drivers including rivalry, adaptation, and aspiration levels
Excerpt from the Book
4. Happiness and income
Within the many factors that potentially affect human well-being, income is by far the most prominent in economic happiness research. This might not come as a surprise as income or a person’s material living standard, normally captured by GDP or GNP, is the main empirical indicator of individual welfare in received economics. To put into doubt that income and happiness are close correlates, constitutes an important challenge to traditional economics.
Many empirical tests reveal a substantial correlation of higher income with higher subjective well-being. This holds for people living in households with a high income and/or earning a high labor income but also in general for people living in a rich rather than in a poor country. The controversy emerges, when it comes to the relationship between income growth and the development of subjective well-being over time. Are the empirical observations consistent with the cross-section correlation between income per capita and average subjective wellbeing across countries? Does income growth produce higher average subjective well-being? Proponents of the Easterlin Paradox claim that it does not (e.g., Easterlin et al. 2010).
The Easterlin Paradox concerns whether we are happier and more contented as our living standards improve. In the mid-70s, the economist Richard Easterlin showed that despite a steadily growing American economy over the previous decades, the average happiness had remained almost unaltered. Easterlin (1995) showed that this relationship holds for a list of developed nations including the United States, Japan, and nine developed countries in Europe. His most recent work (Easterlin, 2010), however, points out that is also true for a large number of less developed countries in Asia, Latin America, and some transitional economies in Europe. Short-run gains in happiness are possible, but over the longer run, usually more than 10 years, both rich and poor are stuck on a hedonic treadmill.
Summary of Chapters
1. Introduction: This chapter outlines the paper's scope, contrasting the classical economic view of rational utility with the psychological reality of human happiness and introducing the core research motivation.
2. Definition of happiness: This section explores how psychologists and economists define happiness, emphasizing that it is often treated as a proxy for subjective well-being or life satisfaction.
3. Understanding the Nature of Happiness: This chapter discusses the methodologies for measuring happiness, including self-reports, and notes that while individuals value happiness, it is not the sole goal in life.
4. Happiness and income: This section investigates the correlation between income and well-being, specifically examining the Easterlin Paradox and why national income growth does not always equate to increased happiness.
5. Concepts related to Happiness: This chapter analyzes the mechanisms of rivalry and adaptation—often described as social and hedonic treadmills—that explain why relative position matters more than absolute gains.
6. CONCLUSION: The final chapter summarizes findings on income, unemployment, and political institutions, suggesting that happiness research can provide valuable policy insights if integrated with more consistent theoretical foundations.
Keywords
Economics of Happiness, Subjective Well-being, Easterlin Paradox, Utility, Hedonic Adaptation, Aspiration Level, Rivalry, Life Satisfaction, GDP, Social Treadmill, Behavioral Economics, Economic Policy, Psychological Studies, Income Discrepancy, Human Well-being
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the field of happiness research within economics, specifically analyzing how individual well-being is measured and how it relates to economic indicators and psychological factors.
What are the central thematic areas covered?
The central themes include the definition and measurement of happiness, the relationship between income and well-being, and the impact of psychological mechanisms like rivalry and adaptation on human behavior.
What is the primary goal of the study?
The goal is to provide a comprehensive overview of how modern happiness research challenges traditional economic assumptions and to assess the viability of using "happiness" as a policy target.
Which scientific methods are utilized?
The paper relies on a review of empirical economic and psychological studies, utilizing data from surveys like the World Values Survey and the Eurobarometer to evaluate correlations between subjective reports and life circumstances.
What topics are discussed in the main body?
The main body covers the conceptualization of happiness, the Easterlin Paradox regarding income growth, and theoretical models explaining why human beings often fail to achieve sustained happiness through wealth.
Which keywords best characterize this work?
Key terms include Subjective Well-being, Easterlin Paradox, Hedonic Adaptation, Rivalry, and Utility, reflecting the interdisciplinary approach taken by the author.
How does the author define the "hedonic treadmill"?
The author describes it as a psychological phenomenon where individuals adapt to new living circumstances, such as increased income, returning to a baseline level of happiness despite objective improvements.
What is the significance of the "Easterlin Paradox"?
It highlights the observation that while rich people within a society are generally happier than poor people, increasing the national wealth of a country does not necessarily lead to a corresponding increase in the overall average happiness of its citizens.
- Arbeit zitieren
- Anonym (Autor:in), 2016, Thе Есоnоmісs оf Hаppіnеss, München, GRIN Verlag, https://www.hausarbeiten.de/document/355487
