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Maximizing Happiness?

Author

Listed:
  • Frey Bruno S.

    (University of Zurich, Zürich, Canton ofZurich, Switzerland)

  • Stutzer Alois

    (University of Zurich, Zürich, Canton ofZurich, Switzerland)

Abstract
The measurement of individual happiness challenges the notion that revealed preferences only reliably and empirically reflect individual utility. Reported subjective well-being is a broader concept than traditional decision utility; it also includes concepts like experience and procedural utility. Micro- and macroeconometric happiness functions offer new insights on determinants of life satisfaction. However, one should not leap to the conclusion that happiness should be maximized, as was suggested for social welfare function maximization. In contrast, happiness research strengthens the validity of an institutional approach, such as reflected in the theory of democratic economic policy.

Suggested Citation

  • Frey Bruno S. & Stutzer Alois, 2000. "Maximizing Happiness?," German Economic Review, De Gruyter, vol. 1(2), pages 145-167, May.
    • Handle: RePEc:bpj:germec:v:1:y:2000:i:2:p:145-167
    DOI: 10.1111/1468-0475.00009
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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