Research report 2010 - Max Planck Institute of Economics (1993 until 2014)
The economics of happiness
Authors
Binder, Martin; Coad, Alex
Departments
Evolutionsökonomik (Witt)
Max-Planck-Institut für Ökonomik, Jena
Max-Planck-Institut für Ökonomik, Jena
Summary
Inspired by research in biology and psychology, the central economic concept of “utility” has received a hedonistic interpretation with the advent of happiness research. An individual’s happiness (subjective well-being) is influenced by a complex web of determinants such as income, (un)employment, health and social factors. But in turn, happiness also influences all these factors, with happier individuals more successful in all domains.