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  • Review of Economics and Statistics

The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-being Data

By: Jan-Emmanuel De Neve, George Ward, Femke De Keulenaer, Bert Van Landeghem, Georgios Kavetsos and Michael I. Norton
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Abstract

Are individuals more sensitive to losses than gains in terms of economic growth? We find that measures of subjective well-being are more than twice as sensitive to negative as compared to positive economic growth. We use Gallup World Poll data from over 150 countries, U.S. Behavioral Risk Factor Surveillance System (BRFSS) data on 2.3 million U.S. respondents, and Eurobarometer data that cover multiple business cycles over four decades. This research provides a new perspective on the welfare cost of business cycles, with implications for growth policy and the nature of the long-run relationship between GDP and subjective well-being.

Keywords

Economic Growth; Business Cycles; Welfare; Perception; Global Range

Citation

De Neve, Jan-Emmanuel, George Ward, Femke De Keulenaer, Bert Van Landeghem, Georgios Kavetsos, and Michael I. Norton. "The Asymmetric Experience of Positive and Negative Economic Growth: Global Evidence Using Subjective Well-being Data." Review of Economics and Statistics 100, no. 2 (May 2018): 362–375.
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About The Author

Michael I. Norton

Negotiation, Organizations & Markets
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More from the Authors
  • 'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt By: Grant E. Donnelly, Cait Lamberton, Stephen Bush, Zoe Chance and Michael I. Norton
  • Work Values Shape the Relationship Between Stress and (Un)Happiness By: George Ward, Hanne Collins, Michael I. Norton and Ashley V. Whillans
  • Consumers Punish Firms that Cut Employee Pay in Response to COVID-19 By: Bhavya Mohan, Serena Hagerty and Michael Norton
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