EconPapers    
Economics at your fingertips  
 

Structural Changes in Economic Growth and Well-Being: The Case of Italy’s Parabola

Maurizio Pugno and Francesco Sarracino

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2021, vol. 158, issue 3, No 1, 838 pages

Abstract: Abstract The controversies on the relationship (called ‘gradient’) between the time trend of GDP and of subjective well-being oppose those who claim that the gradient is positive, to those who argue that it is nil. The possible existence of significant changes of the two trends and of the gradient within the same country is a challenge to both views. By focusing on the case of Italy, we show that the long-run trends of GDP and of well-being turned from increasing to decreasing, and that the gradient exhibits a rise through two structural breaks. This evidence is consistent with the ‘loss aversion’ hypothesis. From this macro-analysis we further go into micro-analysis to explain why subjective well-being declined so steeply. We find that the erosion of trust in others, the increase of financial dissatisfaction, worsened health, and greater importance of income contribute to the decline of subjective well-being. As far as we know, this is the first attempt to test the role of loss aversion in the long run using both macro- and micro-economic approaches.

Keywords: Structural breaks; Life satisfaction; Economic growth; Loss aversion; GDP per capita (search for similar items in EconPapers)
JEL-codes: I31 O11 O52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11205-021-02714-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Structural changes in economic growth and well-being. The case of Italy’s parabola (2019) Downloads
Working Paper: Structural changes in economic growth and well-being. The case of Italy's parabola (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:158:y:2021:i:3:d:10.1007_s11205-021-02714-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11205-021-02714-7

Access Statistics for this article

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino

More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2024-07-05
Handle: RePEc:spr:soinre:v:158:y:2021:i:3:d:10.1007_s11205-021-02714-7