Arbeitspapier
Back to Bentham: Should we? Large-scale comparison of decision versus experienced utility for income-leisure preferences
Subjective well-being (SWB) is increasingly used as a way to measure individual well-being. Interpreted as "experienced utility", it has been compared to "decision utility" using specific experiments (Kahneman et al., 1997) or stated preferences (Benjamin et al. 2012). We suggest here an original large-scale comparison between ordinal preferences elicited from SWB data and those inferred from actual choices (revealed preferences). Precisely, we focus on income-leisure preferences, closely associated to redistributive policies. We compare indifference curves consistent with income-leisure subjective satisfaction with those derived from actual labor supply choices, on the same panel of British households. Results show striking similarities between these measures on average, reflecting that overall, people's decision are not inconsistent with SWB maximization. Yet, the shape of individual preferences differ across approaches when looking at specific subpopulations. We investigate these differences and test for potential explanatory channels, particularly the roles of constraints and of individual "errors" related to aspirations, expectations or focusing illusion. We draw implications of our results for welfare analysis and policy evaluation.
- Sprache
-
Englisch
- Erschienen in
-
Series: ISER Working Paper Series ; No. 2015-02
- Klassifikation
-
Wirtschaft
Design of Experiments: General
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- Thema
-
decision utility
experienced utility
labor supply
subjective well-being
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Akay, Alpaslan
Bargain, Olivier
Jara, H. Xavier
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Essex, Institute for Social and Economic Research (ISER)
- (wo)
-
Colchester
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Akay, Alpaslan
- Bargain, Olivier
- Jara, H. Xavier
- University of Essex, Institute for Social and Economic Research (ISER)
Entstanden
- 2015
Ähnliche Objekte (12)
Back to Bentham, Should We? Large-Scale Comparison of Experienced versus Decision Utility
Back to the Future: Decomposition Analysis of Distributive Policies Using Behavioural Simulations
Earnings differences between Chinese and Indian wage earners, 1987 - 2004
Analysing the effects of tax benefit reforms on income distribution : a decomposition approach
The distributional effects of tax benefit policies under new labour : a Shapley decomposition
How tight are safety nets in nordic countries? : evidence from Finnish register data
Flexible labor supply models
Welfare analysis and redistributive policies
On Modeling Household Labor Supply with Taxation
Normative Evaluation of Tax Policies : From Households to Individuals
Back to the future: Decomposition analysis of distributive policies using behavioural simulations
Flexible labor supply models
Back to Bentham, Should We? Large-Scale Comparison of Experienced versus Decision Utility
Back to the Future: Decomposition Analysis of Distributive Policies Using Behavioural Simulations
Earnings differences between Chinese and Indian wage earners, 1987 - 2004
Analysing the effects of tax benefit reforms on income distribution : a decomposition approach
The distributional effects of tax benefit policies under new labour : a Shapley decomposition
How tight are safety nets in nordic countries? : evidence from Finnish register data
Flexible labor supply models
Welfare analysis and redistributive policies
On Modeling Household Labor Supply with Taxation
Normative Evaluation of Tax Policies : From Households to Individuals
Back to the future: Decomposition analysis of distributive policies using behavioural simulations
Flexible labor supply models
Back to Bentham, Should We? Large-Scale Comparison of Experienced versus Decision Utility
Back to the Future: Decomposition Analysis of Distributive Policies Using Behavioural Simulations
Earnings differences between Chinese and Indian wage earners, 1987 - 2004
Analysing the effects of tax benefit reforms on income distribution : a decomposition approach
The distributional effects of tax benefit policies under new labour : a Shapley decomposition
How tight are safety nets in nordic countries? : evidence from Finnish register data
Flexible labor supply models
Welfare analysis and redistributive policies
On Modeling Household Labor Supply with Taxation
Normative Evaluation of Tax Policies : From Households to Individuals
Back to the future: Decomposition analysis of distributive policies using behavioural simulations