There is an ambiguity in Amartya Sen's capability approach as to what constitutes an in-dividual's resources, conversion factors and valuable functionings. What we here call the\circularity problem" points to the fact that all three concepts seem to be mutually en-dogenous and interrelated. All...

Work and life satisfaction depends on a number of pecuniary and nonpecuniary factors at the workplace and determines these in turn. We analyze these causal linkages using a structural vector autoregression approach for a sample of the German working populace collected from 1984 to 2008, finding...

Unemployment has been robustly shown to strongly decrease subjective well-being (or "happiness"). In the present paper, we use panel quantile regression techniques in order to analyze to what extent the negative impact of unemployment varies along the subjective well-being distribution. In our...