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" Happiness and economic policies "
Teng, Joshua Chen-Yuan
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Latin Dissertation
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1098163
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TLets533720
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Teng, Joshua Chen-Yuan
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| Title & Author
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Happiness and economic policies\ Teng, Joshua Chen-Yuan
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| College
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University of East Anglia
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| Date
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2010
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2010
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| Degree
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Ph.D.
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| Abstract
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Some modern happiness economists, such as Layard and Frank, proposea policy of collectively reducing hours at work, based on the assumptionthat concern about status is a fundamental property of human nature.However, psychologists who subscribe to the self-determination theory(SDT) and personality studies find that the attitude of social comparisonis inherently incompatible with the psychological process of happiness,and suggest that people should change their competitive attitudes.In line with these psychologists, the political philosopher Rawls andthe political economist Frey argue that fair and just institutions couldcultivate non-envious attitudes, which can then enhance happiness. Theirpolicies are compatible with psychological theories, since these policiesprovide people psychological needs proposed by the SDT- autonomy,competence and relatedness. I therefore conclude in my psychologicalanalysis of happiness policies in Chapter 2 that Rawls's and Frey's policycan increase happiness while Layard's policy cannot help extreme statuslovers, but can help those caring about status moderately.I then test my argument empirically in Chapter 3. The results supportmy argument developed in Chapter 2. Moreover, there is evidencesuggesting the mechanism through which Layard's policy improveshappiness is not attainable for extreme status seekers: status lovers havelower quality of family life. To the contrary, the results suggest that themechanism through which Rawls's and Frey's policy promotes happinessis plausible.Assuming that status seekers have negative marginal utility of familyhours, I establish theoretical models to show the possible inefficacy ofLayard's policy in Chapter 4. The model can also demonstrate thatRawls's and Frey's policy of cultivating non-envious attitude canpromote happiness effectively.
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University of East Anglia
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