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

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.

Can Marginal Rates of Substitution Be Inferred from Happiness Data? Evidence from Residency Choices

“…Nonetheless, we view our real-choice field evidence as an important advance over and complement to existing evidence from prior work. When we consider them together, some common themes emerge across the findings in this paper and those in previous work that studies hypothetical choices in a range of realistic scenarios (Benjamin, Heffetz, Kimball, and Rees-Jones, 2012; henceforth BHKR) and abstract scenarios (Benjamin, Heffetz, Kimball, and Szembrot, forthcoming; henceforth BHKS). We highlight four such themes, emphasizing evidence that bears on the question of their generalizability.…”

National well-being policy and a weighted approach to human feelings

“…certain religious groups. Benjamin et al (2014) provides some evidence of the goal of family happiness as a driving force in individuals’ decision-making.…”

“…Here we essentially follow the approach of Eq. (2) of Benjamin et al (2014), and indirectly also some of the innovative modelling ideas in Kimball and Willis (2006).…”

“…1–4. This part of the paper might be seen as building on the spirit of Benjamin et al (2014), because here we also, if in a different way, ask citizens for their views on ‘happiness’ data.…”

Challenges in Constructing a Survey-Based Well-Being Index

“…In this short paper, we focus on one conceptual framework (Benjamin, Heffetz, Kimball, and Szembrot, 2014; hereafter BHKS), which uses self-reported responses to subjective well-being (SWB) and stated preference (SP) survey questions to construct an index of well-being. We briefly review the framework and highlight challenges in the first two steps a government agency would need to take before conducting the SWB and SP surveys: (1) formulating a set of aspects of well-being that is theoretically valid and can be measured accurately via surveys; and (2) choosing and interpreting the surveys’ response scales.…”