- Series Information
- The Oxford Handbook of Well-Being and Public Policy
- List of Contributors
- Cost-Benefit Analysis
- Inequality and Poverty Measures
- Social Welfare Functions
- QALY-Based Cost-Effectiveness Analysis
- Fair Allocation
- Social Ordering Functions
- Multidimensional Indicators of Inequality and Poverty
- Happiness-Based Policy Analysis
- Preference-Based Views of Well-Being
- Mental State Approaches to Well-Being
- Objective Goods
- Subjective Well-Being in Psychology
- Subjective Well-Being in Economics
- Equivalent Income
- Extended Preferences
- SWB as a Measure of Individual Well-Being
- Does the Choice of Well-Being Measure Matter Empirically?
- Does Fairness Require a Multidimensional Approach?
- The Capability Approach and Well-Being Measurement for Public Policy
- Measuring Poverty: A Proposal
- Multidimensional Poverty Indices: A Critical Assessment
- Social Evaluation under Risk and Uncertainty
- Individual Responsibility and Equality of Opportunity
- Welfare Comparisons with Heterogeneous Prices, Consumption, and Preferences
- Welfare and the Household
- Preference Inconsistency: A Psychological Perspective
- Lifetime Well-Being
- The Well-Being of Future Generations
- Author Index
- Subject Index
Abstract and Keywords
Happiness data have an important role in policy. They can be used to monitor social progress over time in the same way that GDP figures are currently used. They can also be used in the subjective well-being valuation (SWV) approach to value nonmarket goods for the purposes of cost-benefit analysis, the primary policy evaluation tool in many governments. This chapter focuses on the latter of these two uses of happiness surveys, where a significant literature has grown over the last decade. It discusses the main problems associated with traditional valuation methods that rely on people’s preferences and the ways in which it has been suggested that SWV can overcome some of these difficulties. SWV also has its problems, and the chapter discusses these, provides suggestions for how results from SWV should be interpreted, and highlights where solutions to the problems in the SWV method have been proposed in the literature.
Professor, Department of Social Policy, London School of Economics
Researcher, London School of Economics
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