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Course Manual for Happiness Economics

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Course Manual for Happiness Economics Radboud University, Nijmegen School of Management Course manual for Happiness Economics 1. Identification Name and course code Happiness Economics FTR-FIMI222 Name of coordinator and participating lecturers Prof.dr. Esther-Mirjam Sent (coördinator) E: [email protected] Dr. Ivan Boldyrev E: [email protected] Dr. André van Hoorn E: [email protected] Drs. Charan van Krevel E: [email protected] Drs. Robbert Rademakers E: [email protected] Name of programme(s)/specialisation(s) of which the course is a compulsory or optional part Compulsory for: This course is part of the minor ‘Well-Being and Society.’ Prerequisites None Elective Yes Assessment (written/oral/exam/paper, etc.) Policy Paper (40%), written exam (60%) 1 Learning outcomes At the end of this course, students are expected to: • describe and explain the historical perspective of economists on well-being and welfare; • explain, defend, and critique the subjective well-being literature, specifically taking into account the effects of income and employment on individuals’ perceived well-being; • compare and contrast proposed measurement tools for well-being, including the methodological views that underlie these instruments; • carry out an empirical study examining possible alternatives for classical measures of well- being, and report scientifically on these findings. Period in which the course is offered Block 2 2. Content This course is part of the minor ‘Well-Being and Society.’ The fact that money does not buy happiness is obvious, but what does? This course offers an interdisciplinary perspective on the nature and determinants of subjective well-being, in particular income and job market outcomes. These insights help us to explore alternatives for Gross Domestic Product (GDP) as a dominant measure for policymakers to improve individuals' well-being. The Inclusive Wealth, Human Development, and Gross National Happiness index, and many other indicators have been suggested as substitutes for GDP, but policy makers remain reluctant to use these measures for a variety of reasons. With the help of various experienced scholars, you will examine these alternative measures and identify benefits and problems of using these indicators for policy making. As part of this course, you will propose, design, and test your own alternative measure for GDP: one that can be useful for policy makers, and is a good indicator for well-being. 3. Organization Time and location (further details in schedule) Lecture: Thursdays 10.30-12.15 Tutorials: Fridays 10:30 -12:15 Session type Happiness Economics offers seven lectures and seven tutorials. The tutorials are devoted to developing the required tools in order to write the policy paper. Registering for work groups N/A 2 Communication Brightspace Office hours of coördinator and participating lecturers By appointment Course material (see schedule for details) 4. Assessment Description of assessment type and components The lectures, tutorials, and textbook material form the basis for the final examination. See the overview of the lectures below for details. Policy Paper (40%) Students are invited to write a policy paper in groups of 3-4 students. The policy paper is no more than 10,000 words, uses an appropriate lay-out, includes a list of references, and provides a word-count that includes the title(s) and notes but excludes the list of references (20-25 pages A4, font size 11). The Policy Paper employs a clear and academic style and all the other elements of an academic paper. The deadline for the draft of the essay is Wednesday, December 2, 17.00. The final version needs to be submitted by Wednesday, December 16, 17.00, an electronic copy should be submitted via Brightspace. The final essay will be marked on a 0 – 10 scale, and counts for 40% of the final grade, Final exam (60%) The final written exam consists in various types of questions, including those to be answered in the form of a short essay. The questions are based on lectures and tutorials, as well as the required readings. Assessment criteria for each assessment component Policy Paper (40%) The goal of the policy paper is to develop an alternative for GDP as measurement for well-being and could be used by policy makers. The assignment consists of two parts: 1. A policy proposal (75%) The goal of your policy proposal is to convince policy makers to substitute GDP with your proposed measure. Therefore, your proposal should have both a theoretical and empirical component in order to illustrate that your alternative measure is both superior in terms of realism (actually measures well-being) and instrumentalism (usefulness). 2. A presentation (25%) of the policy proposal to elaborate on your findings and policy advice. After your presentations, the lecturers will ask critical questions about the viability of your proposal. 3 Furthermore, the presentations are useful to revive feedback from the lecturers as well as from fellow students. Final exam (60%) The final written exam consists of various types of questions, including those to be answered in the form of a short essay. The questions are based on lectures and tutorials, as well as on the required readings. How the different components count towards the final grade Policy Paper 40% Exam 60% Requirements for passing the course Both the average of the policy paper and exam should individually be graded at least with a 5.0. The overall grade for the course should be at least 5.5 in order to pass the course. Repeater regulation If you require a retake, you will need to sit a new exam. The maximum grade for the retake is a 10. 5. Fraud and plagiarism See http://www.ru.nl/nsm/students/study-information/general-study-information/fraud-plagiarism/ Respect for other people's intellectual property is one of the basic norms of scientific work. For example, whether you quote a passage directly in quotation marks, paraphrase it closely in your own words, or just summarize it rapidly, you need to identify the source then and there. This holds for students as much as for scientists. The work you turn in must be your own. Collaboration is not allowed. The Nijmegen School of Management has entered into an agreement with a company specialized in detecting and eliminating plagiarism. This company offers us a program that is able to detect plagiarism in summaries and essays by comparing the texts with other texts as well as texts on the internet. Detection of plagiarism has very serious consequences. 6. How to study for this course Students are expected to read the assigned texts in advance, to ask questions during the lectures, and to participate in tutorials actively. The policy paper is an opportunity to reflect on important questions related to economics, to develop and substantiate one’s own position, and to study additional literature in (methodology of) economics. 4 7. How this course prepares you for the job market The general structure of the course is oriented towards preparing you for various tasks you will encounter both in academic and in non-academic (business, policy, media) environments. Understanding the current scope and limitations of economics is of vital importance for many jobs in which interdisciplinary and complex problems are present; in which critical thinking is valued; in which uneasy decisions have to be made, which require to look at the problem from multiple perspectives and to communicate between different disciplines, epistemic cultures and forms of knowledge; in which, finally, most recent theoretical ideas have to be put to the test of practice. 8. Schedule Detailed overview Lecture 1, Thursday, November 5 Introduction: Money and Well-being? (Sent) Central question: What is the economic perspective on well-being? • What is the traditional view of economists on well-being (Adam Smith)? • Why did economists start to use material wellbeing as indicator for happiness? • What are the advantages and disadvantages of using Gross domestic product as indicator for welfare and well-being? Readings: Daniel M., Hausman, Daniel M., "Philosophy of Economics", The Stanford Encyclopedia of Philosophy chapter 1 (Fall 2018 Edition), Edward N. D. Rasmussen, D. (2006). Does “Bettering Our Condition” Really Make Us Better Off? Adam Smith on Progress and Happiness. American Political Science Review, 100(3), 309-318. doi:10.1017/S0003055406062204 Speich, Daniel, Traveling with the GDP Through Early Development Economics' History (September 2008). The Nature of Evidence: How Well Do Facts Travel? Working Paper No. 33/08. Available at SSRN: https://ssrn.com/abstract=1291058 or http://dx.doi.org/10.2139/ssrn.1291058 Tutorial 1, Friday, November 6 Introduction project (Rademakers) Lecture 2, Thursday, November 12 Topic: indicators for well-being (Rademakers) Central question: What makes indicators for well-being useful? • Instrumentalism vs. realism debate: Should indicators of well-being be useful for policy makers or a as realistic as possible to measure well-being? • What is the trade-off between instrumentalism and realism (if there is one)? 5 • What are popular alternatives for GDP to measure well-being? • What could be the role of well-being indicators for the design of policy? Readings: Ben. S., Bernanke (2010) University of South Carolina Commencement Address. https://www.federalreserve.gov/newsevents/speech/bernanke20130602a.htm R.A., Easterlin (2013), HAPPINESS, GROWTH, AND PUBLIC POLICY. Economic Inquiry, 51: 1-15. doi:10.1111/j.1465-7295.2012.00505.x Niiniluoto, Ilkka, "Scientific Progress", Chapter 3 of The Stanford
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