Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/214297
Authors: 
Frey, Bruno S.
Luechinger, Simon
Stutzer, Alois
Year of Publication: 
2004
Series/Report no.: 
CREMA Working Paper 2004-11
Abstract: 
This paper discusses a novel approach to elicit people's preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional approaches and identification issues are addressed. Moreover, it is applied to estimate utility losses caused by terrorist activities in France, the UK and the Republic of Ireland. Terrorism in these countries depresses life satisfaction in a sizeable and robust way. However, the calculation of the trade-off between terrorism and income requires improved measurement of the marginal utility of income.
Subjects: 
life satisfaction approach
non-market valuation
cost-benefit analysis
subjective well-being
and terrorism
JEL: 
D61
D74
H41
H56
I31
Document Type: 
Working Paper

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