Monday, August 3, 2009

Happiness Equations (3)

In the relatively recent field of 'Happiness economics' economists have started assessing welfare by combining economists’ and psychologists’ techniques. Micro-econometric happiness equations have been reported to be represented as:

Wit = a + BXit + Eit

W = The reported well-being of individual i at time t; a (alpha) is a coefficient; X = Vector of known variables including socio-demographic and socioeconomic characteristics; E = Error term which captures unobserved characteristics and measurement errors.

This requires knowledge of regression-analysis and is more suited for the economists.

1 comment:

Mridula said...

You know I enjoyed management more than Economics because of the wider scope given to human emotions in the management area.