Revisiting The Easterlin Paradox: What Can We Learn from It?
This paper examines the Easterlin paradox using empirical and simulated data. The results reveal that the existence of Easterlin paradox could be just due to the rating scale of happiness measurement. The rating scale measurement of self-reported happiness limits the variation of happiness of time s...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2019
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/30101/1/JES%2001%2001%202019%2022-30.pdf |
| _version_ | 1825806118397411328 |
|---|---|
| author | Lim, Hock Eam |
| author_facet | Lim, Hock Eam |
| author_sort | Lim, Hock Eam |
| collection | UUM |
| description | This paper examines the Easterlin paradox using empirical and simulated data. The results reveal that the existence of Easterlin paradox could be just due to the rating scale of happiness measurement. The rating scale measurement of self-reported happiness limits the variation of happiness of time series data due to the averaging effect compared to the happiness variation of cross-sectional data. Mathematically, the low variation of happiness can lead to the Easterlin paradox: cross-sectional effects of income on happiness are significant but turn into insignificant for time series happiness. The result of simulated data without the scale of happiness measurement, i.e., the underlying happiness, shows that the effects of income on happiness are significant at cross-sectional and time series data. Nevertheless, once the limited scale of happiness measurement, i.e., the self-reported happiness, is used, the income effect is significant only at cross-sectional data. Thus, the low variation in scale of measurement can be the cause of the Easterlin paradox. What we can learn is: the limited scale of happiness measurement produces the Easterlin paradox, and the happiness measurement needs to be revised to ensure the variation in happiness could be captured adequately. |
| first_indexed | 2024-07-04T06:43:43Z |
| format | Article |
| id | uum-30101 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:43:43Z |
| publishDate | 2019 |
| publisher | UUM Press |
| record_format | eprints |
| spelling | uum-301012023-11-30T08:19:00Z https://repo.uum.edu.my/id/eprint/30101/ Revisiting The Easterlin Paradox: What Can We Learn from It? Lim, Hock Eam HC Economic History and Conditions This paper examines the Easterlin paradox using empirical and simulated data. The results reveal that the existence of Easterlin paradox could be just due to the rating scale of happiness measurement. The rating scale measurement of self-reported happiness limits the variation of happiness of time series data due to the averaging effect compared to the happiness variation of cross-sectional data. Mathematically, the low variation of happiness can lead to the Easterlin paradox: cross-sectional effects of income on happiness are significant but turn into insignificant for time series happiness. The result of simulated data without the scale of happiness measurement, i.e., the underlying happiness, shows that the effects of income on happiness are significant at cross-sectional and time series data. Nevertheless, once the limited scale of happiness measurement, i.e., the self-reported happiness, is used, the income effect is significant only at cross-sectional data. Thus, the low variation in scale of measurement can be the cause of the Easterlin paradox. What we can learn is: the limited scale of happiness measurement produces the Easterlin paradox, and the happiness measurement needs to be revised to ensure the variation in happiness could be captured adequately. UUM Press 2019 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30101/1/JES%2001%2001%202019%2022-30.pdf Lim, Hock Eam (2019) Revisiting The Easterlin Paradox: What Can We Learn from It? Journal of Economics and Sustainability (JES), 1 (1). pp. 22-30. ISSN 2637-1294 https://e-journal.uum.edu.my/index.php/jes/article/view/12534 |
| spellingShingle | HC Economic History and Conditions Lim, Hock Eam Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title | Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title_full | Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title_fullStr | Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title_full_unstemmed | Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title_short | Revisiting The Easterlin Paradox: What Can We Learn from It? |
| title_sort | revisiting the easterlin paradox what can we learn from it |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/30101/1/JES%2001%2001%202019%2022-30.pdf |
| work_keys_str_mv | AT limhockeam revisitingtheeasterlinparadoxwhatcanwelearnfromit |