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Traffic accident experience and subjective well-being

Author

Listed:
  • Andrén, Daniela

    (Örebro University School of Business)

  • Johansson Tapper, Erik

    (Unaffiliated)

Abstract

In this paper we aim to use a posteriori approach to estimate the monetary compensation that would keep the individual’s subjective well-being unchanged after experiencing traffic accidents. The coefficients of the life satisfaction equation, estimated with Swedish data collected in May 2020, indicated no statistically significant association between accident experience and life satisfaction. This result is in line with the extensive empirical research on hedonic adaptation that suggests individuals’ tendency to adapt relatively fast to new life circumstances and highlights the importance of knowing the time of the accident in order to draw conclusions about when and what monetary compensation might be needed to keep the individuals’ life satisfaction unchanged when experiencing, directly or indirectly, a traffic accident.

Suggested Citation

  • Andrén, Daniela & Johansson Tapper, Erik, 2020. "Traffic accident experience and subjective well-being," Working Papers 2022:9, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2022_009
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    subjective well-being; life satisfaction; well-being valuation method; traffic accident; direct and indirect experience;
    All these keywords.

    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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