TY  - RPRT
        AU  - Odermatt, Reto
AU  - Stutzer, Alois
        TI  - Subjective Well-Being and Public Policy
        PY  - 2017/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11102
        UR  - https://www.iza.org/publications/dp11102
        AB  - Measures of subjective well-being have gained substantial attention in economics as quantitative approximations of individual welfare. They allow researchers to study relevant determinants of welfare on an individual as well as on a societal level. These determinants might not to be easily detectable in observable behavior. 
By referring to the recent well-being literature, we provide a selection of determinants of well-being that are important for public policy and show how the analysis of subjective well-being is applied as a complementary analytical tool for policy evaluation. We highlight the use of these measures for guiding public policy in areas that might involve suboptimal behavior. We also discuss some challenges for future research that are associated with the choice of evaluation metrics, the role of aspiration and adaption in evaluations, and utility misprediction.
        KW  - subjective well-being
KW  - determinants of welfare
KW  - policy evaluation
KW  - bounded rationality
        ER  -