Well-Being and Economics

This chapter explores accounts of individual and social welfare underlying contemporary welfare economics. It argues that there is a one-to-one mapping between three prominent approaches to welfare assessment and three philosophical accounts of individual well-being: while standard economics is based on preference-satisfaction accounts, the economics of happiness is based on mental-state accounts, and the social-indicators / capability approach on objective-list accounts. Moreover, it argues that at least standard economics and the economics of happiness are based on some utilitarian social welfare criterion. The discussion underscores how economists both use and produce philosophy in their scientific practice, and consequently how economists and philosophers may have much to learn from each other