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Mind the gap? Business cycles and subjective well-being

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  • Matti Hovi
  • Jani-Petri Laamanen

Abstract

We examine the relationship between output fluctuations and within-country variation in subjective well-being using country panels. We show that the deviation of output from trend, unlike trend growth, is positively associated with well-being. The explanatory power of the business cycle is found to be better than that of the level of output.

Suggested Citation

  • Matti Hovi & Jani-Petri Laamanen, 2016. "Mind the gap? Business cycles and subjective well-being," Applied Economics Letters, Taylor & Francis Journals, vol. 23(17), pages 1206-1209, November.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:17:p:1206-1209
    DOI: 10.1080/13504851.2016.1145340
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    Cited by:

    1. Maurizio Carpita & Enrico Ciavolino & Mariangela Nitti, 2019. "The MIMIC–CUB Model for the Prediction of the Economic Public Opinions in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(1), pages 287-305, November.
    2. Hovi, Matti & Laamanen, Jani-Petri, 2021. "Income, aspirations and subjective well-being: International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 287-302.
    3. Hovi Matti & Laamanen Jani-Petri, 2017. "Adaptation and Loss Aversion in the Relationship between GDP and Subjective Well-being," Working Papers 1717, Tampere University, Faculty of Management and Business, Economics.

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