Yale’s business school just published an interesting interview with Betsey Stevenson-my favorite economist. And yes, the usual disclosure applies: this is partly because she’s an interesting coauthor and colleague, but also because she’s my partner. She makes an interesting point about the interplay between happiness research and behavioral economics:
For a very long time, we believed the best thing to do was just look at what people do and infer their preferences from their behavior. But we’ve started to learn that there are some domains where that is hard to do… I think one of the richest potential areas for happiness data is in the area of behavioral economics – in situations where the way people behave may not actually reflect their true, underlying preferences.
But she also warns economists not to get too carried away:
There is a real question of whether happiness is the same thing as utility. Gary Becker has argued quite forcefully that they are not the same thing, that they should not be used interchangeably, that instead we should think of happiness as being one component of utility. I agree with his point that there is probably more to life than even life satisfaction. I know that sounds almost oxymoronic, but perhaps we’re missing a sense of greater purpose or fulfillment.
The interview is interesting throughout, providing a provocative account of the state of knowledge on economics and happiness. Read the full interview, here.
and 
. You can also watch it on 
“For a very long time, we believed the best thing to do was just look at what people do and infer their preferences from their behavior.”
I find it pretty silly that anyone, at least any mature adult, would ever think that. It seems to me that almost the very definition of being a responsible adult means doing things that you clearly would prefer not to do. Things like filing your tax return, taking out the trash, attending a funeral, working an extra job so you can afford music lessons for you kid, etc are typically done out of a sense of responsibility, not “preference”. It’s just that some people are afforded more opportunity to follow their preferences (probably either through sheer luck or as a result of exhibiting the aforementioned responsibility)
I feel like a lot of what she says runs contrary to what I’ve heard from other researchers. I would really love for some references since she seems to be citing a bunch of research. I understand that’s not the object of the article, but it would be nice.
I guess this means economists have a hard time knowing what they are talking about.
I don’t think people want to be happy. What they want is to be satisfied. We misunderstand this by such bromides, as “we hold these truths to be self-evident…….. life, liberty, and the pursuit of happiness.” Better to have acknowledged “life, liberty, and the pursuit of satisfaction.”
Happiness is no more useful to a person than anger, humiliation, or sadness. Wasn’t there research recently that surmised that happiness makes us stupid, and anger makes us smart? Please reference it , if you are familiar.
So, I take all the happiness research to be irrelevant.
Dear Andrew and Jz;
The best research I know on the subject of happiness was done by Sigmund Freud. It is in Civilization and its Discontents. As far as your insight that people don’t want to be happy, I think that you may have a point. I think that people have to come to terms with who they are and what they want and struggle to overcome whatever is in their way.
I think the metrics are a big problem. Some people (and you know who) are never happier than when complaining.
If our ancestors were ‘happy ‘we would be still living in caves!
Happy people are the most unproductive people I know: they are too happy to care.
Long live unhappy people. Steve Jobs – you are my hero!
Meditate. If that doesn’t do it, meditate more.
(ps Love #1 Midge McBride)