Economics of Happiness
We will explore the economics of happiness in both the micro and macro realm. We start with the neoclassical model of rational individuals who know with great precision what makes them happy. Next we explore behaviorist challenges to that model, including issues of regret, altruism, fairness, and gender. On the macro side, we investigate the puzzle of why, though most of us like more income, a growing GDP does not seem to make societies happier; we examine the impact of the macroeconomic environment on individual happiness. Finally we touch on current policy issues such as quantitative happiness indicators that have been adopted around the world, “paternalistic” policy measures to increase happiness, and the no-growth movement. (ECON 0150 or ECON 0155) 3 hrs. lect.