An Overview of Intertemporal Measures of Individual Well-Being: Can They Explain Life Satisfaction Better?
Individual well-being is multidimensional, and depends on comparisons to a reference and on past experiences. Various aspects of quality of life need to be jointly considered in its measurement. Traditional economic modeling has neglected these basic facts. However, this neglect has been challenged by an increasing number of contributions in the income-distribution literature on the measurement of individual well-being. These have proposed various indices which allow different aspects of comparisons to others and to past experiences to be brought into the analysis of the phenomenon under consideration.
KeywordsRelative Income Loss Aversion Relative Deprivation Material Deprivation Multidimensional Poverty
I thank Walter Bossert, Andrew Clark, Werner Pascha, Tadashi Yagi and participants at the International Conference on Comparative Study on Happiness in Kyoto and Paris for comments and suggestions.
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