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

2017/08/11 by Jan‐Emmanuel De Neve, George Ward, Femke De Keulenaer +3 · 2 citations
Psychology · Economics, Econometrics and Finance · Social Sciences · #Psychological Well-being and Life Satisfaction #Economic theories and models #Income, Poverty, and Inequality

paper · pdf · doi:10.1162/rest_a_00697

openalex publication_date 2017/08/11 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01

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 US 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.

Citations

• The financial crisis and the well-being of Americans: 2011 OEP Hicks Lecture*
• Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being
• Economic Growth Evens Out Happiness: Evidence from Six Surveys
• Loss Aversion in Riskless Choice: A Reference-Dependent Model
• Why Are the Unemployed So Unhappy?Evidence from Panel Data
• The Impact of Uncertainty Shocks
• Models of Affective Decision Making
• Prospect Theory: An Analysis of Decision under Risk
• Thirty Years of Prospect Theory in Economics: A Review and Assessment
• Journal of Economic Literature

Cited by

• Stable traits but unstable measures? Identifying panel effects in self-reflective survey questions
• Easterlin paradox [wikipedia]

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