Does being richer make you feel better than being cooler?

Economists (and actuaries) like to measure things.

The easier to measure and the more reliable the measure, the more we like to measure it. This is not unlike the drunk looking for his keys under the street lamp because that’s where the light is even if it isn’t where he dropped the keys.

Sometimes the most important things to measure are very difficult to measure reliably. Happiness is one of these things.  Economists have been trying to measure this for decades with interesting, counter-intuitive and sometimes contradictory results.

Recent research suggests that maybe money does make people happier after all.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.