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Many studies document failures of expected utility's key assumption, the independence axiom. Here, we show that independence can be decomposed into two distinct axioms - betweenness and homotheticity - and that these two axioms are necessary and sufficient for independence. Thus, independence...
Persistent link: https://www.econbiz.de/10011282512
There have been more than 500,000 opioid overdose deaths since 2000. To analyze the opioid epidemic, we construct a model where individuals, with and without pain, choose whether to misuse opioids knowing the probabilities of addiction and dying. These odds are functions of opioid use. Markov...
Persistent link: https://www.econbiz.de/10014278374
Increasing evidence from the empirical economic and psychological literature suggests that positive and negative well-being … analyzing the determinants of subjective well-being. We argue that this conclusion reflects in part the use of too restrictive … asymmetries in single-item measures of subjective well-being. An application to data from the German Socio-Economic Panel for 1984 …
Persistent link: https://www.econbiz.de/10010315521
Much progress has been made in recent years in developing and applying a direct measure of utility using survey questions on satisfaction with income and with life in general. In this paper we apply this new type of measurement to the study of money illusion. Using data from the German...
Persistent link: https://www.econbiz.de/10010315573
Traditional tools of welfare economics identify the envy-related welfare loss from conspicuous consumption only under … very strong assumptions. Measured income and life satisfaction offers an alternative for estimating such consumption … externalities. The approach is developed in the context of luxury car consumption (Ferraris and Porsches) in Switzerland. Results …
Persistent link: https://www.econbiz.de/10010316849
birth and early-life conditions on adulthood outcomes. These latter include both well-being and the stress hormone cortisol …. Employment and marital status are important adult determinants of well-being. Log family income and absence from school also … predict adult well-being, although their importance falls when controlling for adult and birth characteristics. Among the …
Persistent link: https://www.econbiz.de/10012654426
spend our time. A relevant question is how this change in time-use affected the well-being of people in general and younger … and the well-being of Jammers, the users of HaikuJAM (HJ), a mobile app that aims to boost emotional well-being using … well-being and their personal development. Our results suggests that the app features attract a specific group of users who …
Persistent link: https://www.econbiz.de/10012654450
's subjective well-being unchanged after experiencing traffic accidents. The coefficients of the life satisfaction equation …
Persistent link: https://www.econbiz.de/10013426307
A continuous and a discrete rating scale were implemented for a single item happiness question in a representative survey. A randomized controlled experiment enables unique analyses on data quality and distributions, which suggest superiority of the continuous scale. Results raise doubts about...
Persistent link: https://www.econbiz.de/10010316886
This paper studies the evolution of life satisfaction over the life course in Germany. It clarifies the causal interpretation of the econometric model by discussing the choice of control variables and the underidentification between age, cohort and time effects. The empirical part analyzes the...
Persistent link: https://www.econbiz.de/10010316897