1. Measuring Well-Being

2. Teaser
All things considered, how happy have you been these days out of 10?

3. Frey & Stutzer 2002
If the content of utility can be measured, then economists should consider using that content instead of the current content-free method.
The content of utility, in the form of subjective well-being, can be measured.
Therefore, economists should consider using that content instead of the current content-free method.

4. Is subjective well-being (SWB) an appropriate content for utility?
Is SWB the right kind of thing to fill utility?
It’s a very good fit conceptually
But, it will only work if it can be objectively measured

5. What is the evidence for subjective well-being being measurable?
Introspective
Self-reports
Observing behaviour
Brain scans

6. Introspection Ask yourself how you feel about your life
We may be bad at predicting what will bring us happiness but we are quite good at assessing our current emotional state and our satisfaction with our life
But sometimes we are affected by biases

7. Self-Reports Communicating your introspection
Usually by questionnaires
But biases can affect the results
Kahneman

8. Observing Behaviour Smiling (real smiles)
Does away with many biases from self-reports buts adds other problems (similar to the ones with the current economic model

9. Brain Scans Various methods including EEG
Left vs. right hemisphere brain activity
More left hemisphere brain activity at ‘rest’ = positive affect
More right hemisphere brain activity at ‘rest’ = negative affect
Correlated with behaviour and self-reports
But best fit still only about 0.2
EEG = electroencephalogram

10. Cute baby = Left side
Note graphic pic warning for next one

11. Deformed baby = Right side

12. What are the other considerations when deciding whether to use subjective well-being as the content for utility?
Practical considerations
Philosophical considerations

13. What is the future for subjective well-being as the content for utility?
Well-being can be measured but practical and philosophical considerations must be taken into account
Other measures need to be taken into account