Measuring Happiness, Making Policy

In the last chapter, we sketched a general evolution in thinking about happiness, from objective GDP to subjective measurements of individuals. We briefly touched upon some of the potential limitations, but did not go deeply into definitions or forms of measurement. In this chapter, we make that deeper move: first clarifying key definitions that recur throughout this volume, then looking at how different forms of measurement feature in contemporary policymaking discussions. The key distinctions are macro/micro and subjective/objective. Within, say, subjective happiness, there are a range of important differences as well, that is, between hedonic and eudemonic perspectives. Understanding these differences is crucial to lay the groundwork for clarity in thinking about cultural difference in happiness and well-being. This prepares the way for the next chapter, wherein we elaborate the Interdependent Approach.