Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309656 
Year of Publication: 
2018
Citation: 
[Journal:] International Journal of Management and Economics [ISSN:] 2543-5361 [Volume:] 54 [Issue:] 1 [Year:] 2018 [Pages:] 58-68
Publisher: 
De Gruyter Open, Warsaw
Abstract: 
The paper consists of a discussion on the relevance of non-income drivers of welfare. This discussion is based on a subjective Bayesian reasoning, where welfare perceptions are subjectively rational decisions of individuals, who are, as author suggests, the ultimate decision-makers in respect of what welfare actually means for them. The objective of the paper is to investigate if income should be taken for granted as a sole driver of welfare. The conclusion is drawn from a methodological investigation of this question in a Bayesian concept of probability with a consideration for correlations among income and non-income drivers of welfare. It suggests that income should not be taken for granted as a sole driver of welfare since the non-income factors, which are not correlated with income, appear to be relevantly affecting individuals' perceptions of welfare with Bayesian probability of almost 65%. Thereby, the paper is a reaffirmation of a need for further research in the area of welfare measures that might constitute an alternative to income-dominated indicators. Its value emanates from unambiguous answer in favour of the relevance of non-income drivers across welfare perceptions, which, without Bayesian reasoning, could remain unsolved at the point of 50% odds for relevance (irrelevance).
Subjects: 
welfare
non-income welfare
subjectivism of welfare
drivers of welfare
welfare perception
welfare measurement
Bayesian probability
JEL: 
I 31
C 11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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