On the Curvature of the Reporting Function from Objective Reality to Subjective Feelings

Oswald, Andrew J.

doi:10.2139/ssrn.1135920

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On the Curvature of the Reporting Function from Objective Reality to Subjective Feelings

IZA Working Paper No. 3344

15 Pages Posted: 23 May 2008

See all articles by Andrew J. Oswald

Andrew J. Oswald

University of Warwick - Department of Economics; IZA Institute of Labor Economics

Abstract

I suggest the idea of a reporting function, r(.), from reality to feelings. The 'happiness' literature claims we have demonstrated diminishing marginal utility of income. I show not, and that knowing r(.)'s curvature is crucial. A quasi-experiment on heights is studied.

Keywords: money, diminishing marginal utility, height, concavity

JEL Classification: I3, D1

Suggested Citation: Suggested Citation

Oswald, Andrew J., On the Curvature of the Reporting Function from Objective Reality to Subjective Feelings. IZA Working Paper No. 3344, Available at SSRN: https://ssrn.com/abstract=1135920 or http://dx.doi.org/10.2139/ssrn.1135920