Valuing Health Conditions - Insights from Happiness Surveys Across Countries and Cultures

Posted: 19 Apr 2011

See all articles by Carol Graham

Carol Graham

affiliation not provided to SSRN

Lucas Higuera

affiliation not provided to SSRN

Eduardo A. Lora

Inter-American Development Bank (IDB) - Research Department

Date Written: July 2009

Abstract

This paper assesses the effects of different health conditions on happiness. Based on a large data set for Latin America, the effects of different conditions are examined across age, gender, and income cohorts. Anxiety and pain have stronger effects than physical problems, likely because people can adapt better to one-time shocks than to constant uncertainty. The negative effects of health conditions are very large when compared to the effects of income on happiness. While higher peer income typically elicits envy, better peer health provides positive signals for life and health satisfaction. Nonetheless, health norms vary widely across countries. The results suggest that the life satisfaction approach applied to surveys of health may contribute to better health expenditure and policy decisions.

Suggested Citation

Graham, Carol and Higuera, Lucas and Lora, Eduardo A., Valuing Health Conditions - Insights from Happiness Surveys Across Countries and Cultures (July 2009). IDB Working Paper No. 17, Available at SSRN: https://ssrn.com/abstract=1814719

Carol Graham

affiliation not provided to SSRN

Lucas Higuera

affiliation not provided to SSRN

Eduardo A. Lora

Inter-American Development Bank (IDB) - Research Department ( email )

1300 New York Ave., NW
Washington, DC 20577
United States
202-623-1271 (Phone)
202-623-2481 (Fax)

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