Individual Experience of Positive and Negative Growth Is Asymmetric Global Evidence from Subjective Well being Data by Jan Emmanuel De Neve George W. Ward Femke De Keulenaer Bert Van Landeghem Georgios Kavetsos and Michael I. Norton Are individuals more sensitive to losses than gains in macroeconomic growth.
The authors analyze subjective
Well being data drawn from three large data sets to investigate whether economic downturns are associat with decreases in individual well being that are significantly larger than increases in well being from equivalent upswings. discussions focusing on the benefits of economic growth often overlook and should consider the psychological toll that recessions may create. Key UAE Phone Number List concepts include Individuals experience losses more acutely than gains in a macroeconomic setting. Recession years are significantly associat with losses in well being. The question whether people are more sensitive to losses than equivalent gains in economic growth relates to the famous behavioral finding on individual loss aversion that underpins prospect theory Kahneman and Tversky . Author Abstract Are individuals more sensitive to losses than gains in macroeconomic growth.
Using subjective well being measures
Across three large data sets we observe an asymmetry in the way positive and negative economic growth are experienc with losses having more than twice as much impact on individual happiness as compar to equivalent gains. We use Gallup World Poll data drawn Arabia Whatsapp Number from countries Behavioral Risk Factor Surveillance System BRFSS data taken from a representative sample of . 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 our understanding of the long run relationship between GDP and subjective well being.
