A subjective well-being approach is followed to assess the magnitude of inefficiency in the use of income. The information comes from a Mexican survey and an X-inefficiency technique is used. The paper shows that there exists substantial inefficiency in t

This investigation uses a subjective well-being approach to provide a novel empirical answer to an old normative debate in economic literature: whether consumers use efficiently their income. Based on a large database from Mexico, the paper shows that there exists substantial X-inefficiency in...

This paper uses the subjective well-being approach to value the personal cost of illnesses. The approach becomes an alternative to traditional valuation methodologies based on revealed and stated preferences. The paper shows that illnesses reduce health satisfaction, while income is positively...

Purpose – The purpose of this paper is to use a subjective well-being approach to address a long-standing debate on informal employment: whether it is a low-quality or a high-quality option. The literature generally refers to these options as exclusion vs exit. Policy makers often assume that...