Justin Wolfers and Betsey Stevenson discussed their happiness research on CNBC today.

Arguably the most important finding from the emerging economics of happiness has been the Easterlin Paradox.

What is this paradox? It is the juxtaposition of three observations:

1) Within a society, rich people tend to be much happier than poor people.
2) But, rich societies tend not to be happier than poor societies (or not by much).
3) As countries get richer, they do not get happier.

Easterlin offered an appealing resolution to his paradox, arguing that only relative income matters to happiness. Other explanations suggest a “hedonic treadmill,” in which we must keep consuming more just to stay at the same level of happiness.

Either way, the policy implications of the Paradox are huge, as they suggest that economic growth may not raise well-being by much.

Click here for the full article.

While many would agree that “counting your blessings” is a worthwhile practice, there hasn’t been much experimental research on whether gratitude really has a positive impact on our lives. Several studies have found that gratitude correlates with positive emotions such as happiness, pride, and hope, but experimental work — showing that gratitude causes these things — is scarcer.

Robert Emmons and Michael McCullough figured it would be worthwhile to explore this notion. Their method of study was both ingenious and simple: they would ask 201 students in a health psychology class to respond to a weekly questionnaire. Everyone rated their well-being, was tested on a measure of gratefulness, and reported on their physical health and level of exercise. The key to the study was a division into three groups. The first group listed five things they were grateful for each week. The second group listed five hassles or irritants from the past week. The final group simply wrote down five “events or circumstances” from the past week. This continued for ten weeks.

What sort of things did they write?

Some students said they were grateful for “waking up this morning,” or “for wonderful parents,” or “the Lord for just another day.” Hassles were things like “hard to find parking,” “messy kitchen,” or “having a horrible test in health psychology.”

As you might expect, the students in the gratefulness group scored significantly higher than the hassles group on the gratefulness measure. But they also were more positive about the upcoming week and their life as a whole. They were even healthier than both the hassles and events groups, and they reported significantly more hours of exercise (4.35) than the hassles group (3.01). On the more rigorous measure of positive affect, which assesses many different dimensions of positive emotion, there was, however, no significant difference between the groups.

Click here for the full article.