Behavioral Economics Commons^™

The Importance Of Sampling Frequency For Estimates Of Well-Being Dynamics, Stephen James Hoskins, David W. Johnston, Johannes S. Kunz, Michael A. Shields, Kevin E. Staub

ROSA Journal Articles and Publications

Using a high-frequency panel survey, we examine the sensitivity of estimated self-reported well-being (SWB) dynamics to using monthly, quarterly, and yearly data. This is an important issue if SWB is to be used to evaluate policy. Results from autoregressive models that account for individual-level heterogeneity indicate that the estimated persistence using yearly data is near zero. However, estimated persistence from monthly and quarterly data is substantial. We estimate that persistence to shocks typically lasts around six months and has a net present value of 75–80 per cent of the contemporaneous effect. Estimates are similar for different domains of SWB.

Linking Risk Preference, Women’S Empowerment, Farm Investment And Household Well-Being, Samuel Olusesi Olumide

Department of Agricultural Economics: Dissertations, Theses, and Student Research

A nuanced understanding of intra-household dynamics can inform the design of more effective empowerment and agricultural investment policies. By integrating household risk preferences and empowerment dynamics, this work offers valuable insights into the complex mechanisms driving household welfare and provides a framework for future interventions to promote gender equality and economic development in rural settings. This thesis addresses three core hypotheses: first, that the spouses of risk-seeking male heads are more likely to be disempowered compared to those of risk-averse male heads; second, that households with risk-seeking male heads and disempowered spouses are likely to invest more in farming activities; …

Social Welfare Functions And Health Policy: A New Approach, Matthew D. Adler

Faculty Scholarship

The social welfare function (SWF) framework converts the possible outcomes of governmental policy choice into vectors (lists) of interpersonally comparable well-being numbers, measuring the lifetime well-being of each individual in the population of interest. The SWF proper is a rule for ranking these vectors. The utilitarian SWF adds up well-being numbers. A prioritarian SWF adds up well-being numbers plugged into a strictly increasing and strictly concave transformation function. Governmental policies are conceptualized as probability distributions over well-being vectors. A recent literature applies the SWF framework to health policy. This article first provides a brief overview of the SWF framework and …

Concerns Over The Cost Of Living Among Older Adults In Singapore, Rachel Ngu, Micah Tan, Paulin T. Straughan, Seonghoon Kim, William Tov, Grace Cheong, Xiaoyan Zhang

ROSA Research Briefs

A post-National Day Rally survey conducted in August 2022 found that the rising cost of living and health-related issues were ranked among the top concerns of Singaporeans (Baharudin, 2022). This comes as no surprise as global crises such as the ongoing COVID-19 pandemic and the Russo-Ukrainian conflict, has resulted in global and domestic inflation (Gov.sg, 2022). In May 2022, Singapore reported a 13-year high core inflation of 3.6% (Channel News Asia, 2022), while in September 2022, Singapore’s core inflation had risen to 5.3% (Ang, 2022). Additionally, the government announced that Singapore residents will see a goods and services tax (GST) …

Happy Lottery Winners And Lottery-Ticket Bias, Seonghoon Kim, Andrew J. Oswald

Research Collection School Of Economics

The world spends a remarkable $250 billion a year on lottery tickets. Yet, perplexingly, it has proved difficult for social scientists to show that lottery windfalls actually make people happier. This is the famous and still unresolved paradox due initially to Brickman and colleagues. Here we describe an underlying weakness that has affected the research area, and explain the concept of lottery‐ticket bias (LT bias), which stems from unobservable lottery spending. We then collect new data—in the world’s most intense lottery‐playing nation, Singapore—on the amount that people spend on lottery tickets (n = 5626). We demonstrate that, once we correct …

Studying Successful Ageing: A Showcase Of The Singapore Life Panel, Jee Yuen Yew, Jia Wei Gwee, Anirudh Srivathsan

ROSA Research Briefs

In this special issue of the ROSA Research Brief Series, we showcase two aspects of the work being done at the Centre for Research on Successful Ageing (ROSA). Firstly, we showcase the capabilities of the Singapore Life Panel (SLP) and the data that the SLP is able to obtain and measure on a monthly basis. Secondly, we showcase the amazing work of the SGUnited Traineeship Programme’s Research Assistants at ROSA who have proven themselves to be incredible assets in helping further ROSA’s aims of enabling successful ageing in Singapore. ROSA aims to measure well-being among older adults holistically in order …

Staying Connected: The Importance Of Social Integration On The Well-Being Of Older Adults, Paulin T. Straughan, Vincent Chua, Stephen Hoskins, Frosch Quek

ROSA Research Briefs

It has been about a year since COVID-19 first emerged and reshaped the daily lives of people around the globe, including Singaporeans. Since moving past the circuit breaker in June, Singapore has gradually re-opened and relaxed its restrictions in different phases. As Singapore prepares for Phase 3- the final and least restrictive phase, it is important to examine how Singaporeans have coped and responded with the circuit breaker (7 April 2020) and its gradual easing of restriction in Phase 1 (2nd June 2020) and Phase 2 (19 June 2020), and identify the groups which have fallen through the gaps in …

Attitudes, Behaviours, And The Well-Being Of Older Singaporeans In The Time Of Covid-19: Perspectives From The Singapore Life Panel, Paulin T. Straughan, William Tov, Seonghoon Kim, Terence Cheng, Stephen Hoskins, Micah Tan

ROSA Research Briefs

COVID-19 has affected all Singaporeans, regardless of age and socioeconomic status (SES). Many measures have been implemented by the government to control the spread of this disease, including restrictions on social gatherings, restrictions on overseas travel, and making it compulsory to wear a mask. Measures have also included a partial lockdown – known as the ‘circuit breaker’ – which began in April 2020. This forced Singaporeans to quickly adapt to a new normal with some doing better than others. This research brief provides an overview of how COVID-19 and its related measures have affected seniors in Singapore using data from …

Why Less Property Is More: Inclusion, Dispossession, & Subjective Well-Being, David Fagundes

Faculty Articles

The twin notions of exclusion and possession dominate our cultural and legal conceptions of property. This Article uses the lens of hedonics—the emergent science of happiness—to make a case for the less appreciated notions of inclusion and dispossession. Evidence from this new field shows that owners maximize their welfare, not when they amass land and chattels and keep others away from them, but when they pursue the polar-opposite strategies of inclusion and dispossession, such as sharing their property, donating it to charity, or giving it away. This Article begins its defense of inclusion and dispossession by providing background about the …

Contributors Of Singaporean Youths' Wellbeing: Life Goals, Family-Community-Nation Capitals, Opportunity And Social Mobility, Kong Weng Ho

Research Collection School Of Economics

Life goals induce one’s current investment and set one’s expectations of future outcomes, affecting one’s current state of subjective wellbeing. Using National Youth Survey (NYS) 2016, which has a representative sample of Singaporean youths, we find that non-zero-sum life goals such as family-oriented life goals and altruism-oriented life goals enhance happiness and life satisfaction of Singaporean youths while career-oriented life goals, zero-sum in nature, reduce subjective wellbeing. Apart from personal motivations or life aspirations, perceived social mobility (in terms of career opportunity and meritocracy) matters positively in the subjective wellbeing of both youths in school and in the workforce. Family …

Priority For The Worse Off And The Social Cost Of Carbon, Matthew D. Adler, David Anthoff, Valentina Bosetti, Greg Garner, Klaus Keller, Nicolas Treich

Faculty Scholarship

The social cost of carbon (SCC) is a monetary measure of the harms from carbon emission. Specifically, it is the reduction in current consumption that produces a loss in social welfare equivalent to that caused by the emission of a ton of CO2. The standard approach is to calculate the SCC using a discounted-utilitarian social welfare function (SWF)—one that simply adds up the well-being numbers (utilities) of individuals, as discounted by a weighting factor that decreases with time. The discounted-utilitarian SWF has been criticized both for ignoring the distribution of well-being, and for including an arbitrary preference for earlier generations. …

Justice, Claims And Prioritarianism: Room For Desert?, Matthew D. Adler

Faculty Scholarship

Does individual desert matter for distributive justice? Is it relevant, for purposes of justice, that the pattern of distribution of justice’s “currency” (be it well-being, resources, preference-satisfaction, capabilities, or something else) is aligned in one or another way with the pattern of individual desert?

This paper examines the nexus between desert and distributive justice through the lens of individual claims. The concept of claims (specifically “claims across outcomes”) is a fruitful way to flesh out the content of distributive justice so as to be grounded in the separateness of persons. A claim is a relation between a person and a …

Years Of Good Life Based On Income And Health: Re-Engineering Cost-Benefit Analysis To Examine Policy Impact On Wellbeing And Distributive Justice, Richard Cookson, Owen Cotton-Barrett, Matthew D. Adler, Miqdad Asaria, Toby Ord

Faculty Scholarship

No abstract provided.

Equity By The Numbers: Measuring Poverty, Inequality, And Injustice, Matthew D. Adler

Faculty Scholarship

Can we measure inequity? Can we arrive at a number or numbers capturing the extent to which a given society is equitable or inequitable? Sometimes such questions are answered with a “no”: equity is a qualitative, non-numerical consideration.

This Article offers a different perspective. The difficulty with equity measurement is not the impossibility of quantification, but the overabundance of possible metrics. There currently exist at least four families of equity-measurement frameworks, used by scholars and, to some extent, governments: inequality metrics (such as the Gini coefficient), poverty metrics, social-gradient metrics (such as the concentration index), and equity-regarding social welfare functions. …

Would You Choose To Be Happy? Tradeoffs Between Happiness And The Other Dimensions Of Life In A Large Population Survey, Matthew D. Adler, Paula Dolan, Georgios Kavetsos

Faculty Scholarship

A large literature documents the correlates and causes of subjective well-being, or happiness. But few studies have investigated whether people choose happiness. Is happiness all that people want from life, or are they willing to sacrifice it for other attributes, such as income and health? Tackling this question has largely been the preserve of philosophers. In this article, we find out just how much happiness matters to ordinary citizens. Our sample consists of nearly 13,000 members of the UK and US general populations. We ask them to choose between, and make judgments over, lives that are high (or low) in …

Wellbeing Of Singapore’S Youths, Kong Weng Ho

Research Collection School Of Economics

Given Singapore’s focus on human capital investment in its residents, the nation’s youths have experienced increases in their financial, educational, and physical wellbeing. However, how have our youths fared in their emotional and mental wellbeing? Figures from the World Values Survey show reported a gradual decline in life satisfaction for both general population and youths. Data from four waves of the National Youth Survey confirms this trend. This chapter explores and examines the non-economic channels that may have countered the positive influence of economic success on the wellbeing of youths, namely, changing family structure, heightened stressors, shifting life goals, time …

The Pigou-Dalton Principle And The Structure Of Distributive Justice, Matthew D. Adler

Faculty Scholarship

The Pigou-Dalton (PD) principle recommends a non-leaky, non-rank-switching transfer of goods from someone with more goods to someone with less. This Article defends the PD principle as an aspect of distributive justice --- enabling the comparison of two distributions, neither completely equal, as more or less just. It shows how the PD principle flows from a particular view, adumbrated by Thomas Nagel, about the grounding of distributive justice in individuals' "claims." And it criticizes two competing frameworks for thinking about justice that less clearly support the principle: the veil-of-ignorance framework, and Larry Temkin's proposal that fairer distributions are those concerning …

Harsanyi 2.0, Matthew D. Adler

Faculty Scholarship

How should we make interpersonal comparisons of well-being levels and differences? One branch of welfare economics eschews such comparisons, which are seen as impossible or unknowable; normative evaluation is based upon criteria such as Pareto or Kaldor-Hicks efficiency that require no interpersonal comparability. A different branch of welfare economics, for example optimal tax theory, uses “social welfare functions” (SWFs) to compare social states and governmental policies. Interpersonally comparable utility numbers provide the input for SWFs. But this scholarly tradition has never adequately explained the basis for these numbers.

John Harsanyi, in his work on so-called “extended preferences,” advanced a fruitful …

Describing The Effect Of Adaptation On Settlement, John Bronsteen, Christopher Buccafusco, Jonathan Masur

Faculty Scholarship

No abstract provided.

Hedonic Adaptation And The Settlement Of Civil Lawsuits, John Bronsteen, Christopher J, Buccafusco, Jonathan S. Masur

Faculty Scholarship

This Essay examines the burgeoning psychological literature on happiness and hedonic adaptation (a person's capacity to preserve or recapture her level of happiness by adjusting to changed circumstances), bringing this literature to bear on the probability of pretrial settlement in civil litigation. The existing economic and behavioral models of settlement are incomplete because they do not incorporate the effect of adaptation on the sum for which a plaintiff is willing to accept an offer. When an individual first suffers a serious injury, she will likely predict that the injury will greatly diminish her future happiness. However, during the time that …

Economic Growth And The Interests Of Future (And Past And Present) Generations: A Comment On Tyler Cowen, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Fear Assessment: Cost-Benefit Analysis And The Pricing Of Fear And Anxiety, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Introduction To, Preferences And Rational Choice: New Perspectives And Legal Implications, Matthew D. Adler, Claire Finkelstein, Peter Huang

Faculty Scholarship

No abstract provided.

The Positive Political Theory Of Cost-Benefit Analysis: A Comment On Johnston, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Risk, Death And Time: A Comment On Judge Williams’ Defense Of Cost-Benefit Analysis, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Beyond Efficiency And Procedure: A Welfarist Theory Of Regulation, Matthew D. Adler

Faculty Scholarship

Normative scholarship about regulation has been dominated by two types of theories, which I term "Neoclassical" and "Proceduralist." A Neoclassical theory has the following features: it adopts a simple preference-based view of well-being, and it counts Kaldor-Hicks efficiency as one of the basic normative criteria relevant to the evaluation of regulatory programs. A Proceduralist theory is concerned, not solely with the quality of regulatory outcomes, but also with the governmental procedures that produce these outcomes: it gives intrinsic significance to the procedures that regulatory bodies follow. (One example of a Proceduralist theory is the civic republican theory of regulation advanced …

Implementing Cost-Benefit Analysis When Preferences Are Distorted, Matthew D. Adler, Eric A. Posner

Faculty Scholarship

Cost-benefit analysis is routinely used by government agencies in order to evaluate projects, but it remains controversial among academics. This paper argues that cost-benefit analysis is best understood as a welfarist decision procedure and that use of cost-benefit analysis is more likely to maximize overall well-being than is use of alternative decision-procedures. The paper focuses on the problem of distorted preference. A person's preferences are distorted when his or her satisfaction does not enhance that person's well-being. Preferences typically thought to be distorted in this sense include disinterested preferences, uninformed preferences, adaptive preferences, and objectively bad preferences; further, preferences may …

Rethinking Cost-Benefit Analysis, Matthew D. Adler, Eric A. Posner

Faculty Scholarship

This paper analyzes cost-benefit analysis from legal, economic, and philosophical perspectives. The traditional defense of cost-benefit analysis is that it maximizes a social welfare function that aggregates unweighted and unrestricted preferences. We follow many economists and philosophers who conclude that this defense is not persuasive. Cost-benefit analysis unavoidably depends on controversial distributive judgments; and the view that the government should maximize the satisfaction of unrestricted preferences is not plausible. However, we disagree with critics who argue that cost-benefit analysis produces morally irrelevant evaluations of projects and should be abandoned. On the contrary, cost-benefit analysis, suitably constrained, is consistent with a …

Incommensurability And Cost-Benefit Analysis, Matthew D. Adler

Faculty Scholarship

No abstract provided.