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Subjective Wellbeing and the Discount Rate

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  • James Kennedy

    (University of the West of England (UWE))

Abstract

Academic and policy interest in the determinants of subjective well-being continues to grow. To date, the role of temporal discounting—the extent to which people devalue future rewards—in people’s reports of their subjective well-being has remained unexplored. This paper is the first to provide evidence on the relationship between discount rates and evaluative and hedonic subjective well-being. Using data from a nationally representative sample of 2000 UK respondents in multiple regression analyses, the results suggest that people who devalue future rewards are less satisfied with life and less happy than those who place greater value on future outcomes. However, those who discount heavily are also more likely to expect that they will be happier in the future.

Suggested Citation

  • James Kennedy, 2020. "Subjective Wellbeing and the Discount Rate," Journal of Happiness Studies, Springer, vol. 21(2), pages 635-658, February.
    • Handle: RePEc:spr:jhappi:v:21:y:2020:i:2:d:10.1007_s10902-019-00096-9
    DOI: 10.1007/s10902-019-00096-9
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    1. Carrasco-Garcés, Moisés & Vásquez-Lavín, Felipe & Ponce Oliva, Roberto D. & Diaz Pincheira, Francisco & Barrientos, Manuel, 2021. "Estimating the implicit discount rate for new technology adoption of wood-burning stoves," Energy Policy, Elsevier, vol. 156(C).
    2. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.

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