Happiness: A Revolution in Economics

by Bruno S. Frey

Revolutionary developments in economics are rare. The conservative bias of the field and its enshrined knowledge make it difficult to introduce new ideas not in line with received theory. Happiness research, however, has the potential to change economics substantially in the future. Its findings, which are gradually being taken into account in standard economics, can be considered revolutionary in three the measurement of experienced utility using psychologists' tools for measuring subjective well-being; new insights into how human beings value goods and services and social conditions that include consideration of such non-material values as autonomy and social relations; and policy consequences of these new insights that suggest different ways for government to affect individual well-being. In Happiness , emphasizing empirical evidence rather than theoretical conjectures, Bruno Frey substantiates these three revolutionary claims for happiness research. After tracing the major developments of happiness research in economics and demonstrating that we have gained important new insights into how income, unemployment, inflation, and income demonstration affect well-being, Frey examines such wide-ranging topics as democracy and federalism, self-employment and volunteer work, marriage, terrorism, and watching television from the new perspective of happiness research. Turning to policy implications, Frey describes how government can provide the conditions for people to achieve well-being, arguing that a crucial role is played by adequate political institutions and decentralized decision making. Happiness demonstrates the achievements of the economic happiness revolution and points the way to future research.

Genres: Economics, Psychology, Nonfiction

240 pages, Hardcover

First published May 2, 2008

Reviews

[Sam · Rating 3 out of 5]

"Utility" may be directly measurable. If so, this would revolutionize economics. This book is a dry, footnoted, state-of-science affair. Not for everyone. Also, reader beware: the most famous "discovery" of happiness studies -- that after a certain low bar is reached additional per capita income doesn't signficantly raise happiness levels -- has recently been refuted: see "Subjective Well-Being and Incoome" by Justin Wolfers: http://users.nber.org/~jwolfers/paper...

[Phạm Thảo · Rating 4 out of 5]

This is another book on happiness. But this time, Frey used economic theories to discuss something as abstract as happiness.

So what bring you happiness according to economics?
1. Intelligence? Not at all, people with higher IQ are not happier. Smarty expected too much. Expectation is not healthy once reality is uncertain.
2. Money. Yes, up to a certain point. There is diminishing marginal utility applied to almost everything. Also, human greed is insatiable, money can’t keep up with human need.
3. Age. You live you learn. Elderly people concentrate more on features that make them happy and circumvent those that don’t.
4. Be religious. Religion can act as a haven in difficult time
5. Work for yourself. Somehow, those who are self – employed are happier. Freedom and being self determined bring higher satisfaction.
6. Volunteer more.
7. Get married. More efficient division of labor releases stress and eases life; therefore, increase happiness.
8. Make the most of your genes. A “set point” of happiness strongly influences life satisfaction. To a large extent, the genes one inherits determine this “set- point.” To achieve happiness, it is useful to develop personality traits and life styles that support happiness. Get yourself healthy habit if happiness is the ultimate purpose of life. Thinking at margin to choose what activities yield toward lower opportunity costs. Time is scarce resource, so think twice before set your action.
This is a book on happiness which is backed up by statistics rather than personal anecdotes. Highly recommended for anyone who is looking for happiness and tired of boring self help books

[Luis · Rating 5 out of 5]

Excelentísimo. Muy buena obra de referencia sobre felicidad. En caso de trabajar el tema para alguna investigación, sería muy bueno como referencia sobre casi que cualquier conclusión que se haya sacado de felicidad internacional

[Robb Seaton · Rating 2 out of 5]

The book is a bit of a slog and most of the arguments that Frey presents are not that well developed. On the positive side, I found the section on public attitudes regarding fairness very interesting, and Frey provides tons of useful references to existing literature.

[Boris · Rating 5 out of 5]

Amazing!