Behavioral economics has shaken the view that individuals have well-defined, consistent and stable preferences. This raises a challenge for welfare economics, which takes as a key postulate that individual preferences should be respected. We argue, in agreement with Bernheim (2009) and Bernheim...

We try to operationalise Sen's concept of the living standard using questionnaire data on the economic situation of the Belgian unemployed. We use factor analysis to reduce the number of basic functionings and to avoid possible overlap between them. The factors obtained can be interpreted in a...