The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data

Jan-Emmanuel De Neve; George Ward; Femke De Keulenaer; Bert Van Landeghem; Georgios Kavetsos; Michael I. Norton

doi:10.1162/REST_a_00697

The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data

Jan-Emmanuel De Neve^*, George Ward, Femke De Keulenaer, Bert Van Landeghem, Georgios Kavetsos, Michael I. Norton

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Are individuals more sensitive to losses than gains in terms of economic growth?We find that measures of subjective well-being are more than twice as sensitive to negative as compared to positive economic growth. We use Gallup World Poll data from over 150 countries, BRFSS data on 2.3 million U.S. respondents, and Eurobarometer data that cover multiple business cycles over four decades. This research provides a new perspective on the welfare cost of business cycles, with implications for growth policy and the nature of the long-run relationship between GDP and subjective well-being.

Original language	English
Pages (from-to)	362-375
Number of pages	14
Journal	Review of Economics and Statistics
Volume	100
Issue number	2
DOIs	https://doi.org/10.1162/REST_a_00697
Publication status	Published - 1 May 2018

Keywords

LOSS AVERSION
LIFE SATISFACTION
PROSPECT-THEORY
WELFARE COST
INCOME
HAPPINESS
UTILITY
UNEMPLOYMENT
PARADOX
HAPPY

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Cite this

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title = "The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data",

abstract = "Are individuals more sensitive to losses than gains in terms of economic growth?We find that measures of subjective well-being are more than twice as sensitive to negative as compared to positive economic growth. We use Gallup World Poll data from over 150 countries, BRFSS data on 2.3 million U.S. respondents, and Eurobarometer data that cover multiple business cycles over four decades. This research provides a new perspective on the welfare cost of business cycles, with implications for growth policy and the nature of the long-run relationship between GDP and subjective well-being.",

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AU - De Neve, Jan-Emmanuel

AU - Ward, George

AU - De Keulenaer, Femke

AU - Van Landeghem, Bert

AU - Kavetsos, Georgios

AU - Norton, Michael I.

PY - 2018/5/1

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AB - Are individuals more sensitive to losses than gains in terms of economic growth?We find that measures of subjective well-being are more than twice as sensitive to negative as compared to positive economic growth. We use Gallup World Poll data from over 150 countries, BRFSS data on 2.3 million U.S. respondents, and Eurobarometer data that cover multiple business cycles over four decades. This research provides a new perspective on the welfare cost of business cycles, with implications for growth policy and the nature of the long-run relationship between GDP and subjective well-being.

KW - LOSS AVERSION

KW - LIFE SATISFACTION

KW - PROSPECT-THEORY

KW - WELFARE COST

KW - INCOME

KW - HAPPINESS

KW - UTILITY

KW - UNEMPLOYMENT

KW - PARADOX

KW - HAPPY

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DO - 10.1162/REST_a_00697

M3 - Article

SN - 0034-6535

VL - 100

SP - 362

EP - 375

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

IS - 2

ER -

The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-Being Data

Abstract

Keywords

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