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Technological affluence and subjective well-being

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  • Kavetsos, Georgios
  • Koutroumpis, Pantelis

Abstract

This study measures the welfare effects of technological goods using a recent European pooled cross-sectional dataset. We find that fixed and mobile phones, music players and personal computers, including those with an Internet connection, are associated with significantly higher levels of well-being measured by individual self-reported life satisfaction. Further controlling for mobile and broadband country penetration levels, we provide evidence suggesting that the latter matters for life satisfaction, especially for the users who already possess the relevant devices. Keeping life satisfaction constant, we subsequently derive substantial GDP per capita estimates equivalent to a 10 percentage point increase in broadband and mobile phone penetration.

Suggested Citation

  • Kavetsos, Georgios & Koutroumpis, Pantelis, 2011. "Technological affluence and subjective well-being," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 742-753.
    • Handle: RePEc:eee:joepsy:v:32:y:2011:i:5:p:742-753
    DOI: 10.1016/j.joep.2011.05.004
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    More about this item

    Keywords

    3000; Life satisfaction; Happiness; Technology; Broadband;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H00 - Public Economics - - General - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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