Economics of Subjective Welfare

New research teaches us more about interpretive difficulties of subjective welfare as it relates to analysis of data.

The author links to various articles including one by Deaton during a review of the research. Discussion includes fixed personal characteristics, set point theory, lottery winner analysis, and locus of control.

Why our personalities pose a challenge for economists

by Jed Friedman – senior economist in the Development Research Group (Poverty and Inequality Team) at the World Bank