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Technological Affluence and Subjective Well-Being

Posted: 31 Jan 2011 Last revised: 7 Sep 2014

Georgios Kavetsos

London School of Economics & Political Science (LSE)

Pantelis Koutroumpis

Imperial College Business School; Columbia Institute for Tele-Information

Date Written: June 9, 2012

Abstract

This study measures the welfare effects of technological goods using a recent European pooled cross-sectional dataset. We find that fixed and mobile phones, music players and personal computers, including those with an Internet connection, are associated with significantly higher levels of well-being measured by individual self-reported life satisfaction. Further controlling for mobile and broadband country penetration levels, we provide evidence suggesting that the latter matters for life satisfaction, especially for the users who already possess the relevant devices. Keeping life satisfaction constant, we subsequently derive substantial GDP per capita estimates equivalent to a 10 percentage point increase in broadband and mobile phone penetration.

Keywords: Life Satisfaction, Happiness, Technology, Broadband

JEL Classification: D60, H00, I31, L86, L96

Suggested Citation

Kavetsos, Georgios and Koutroumpis, Pantelis, Technological Affluence and Subjective Well-Being (June 9, 2012). Journal of Economic Psychology, Vol. 32, No. 5, 2011. Available at SSRN: https://ssrn.com/abstract=1552404

Georgios Kavetsos (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Pantelis Koutroumpis

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Columbia Institute for Tele-Information ( email )

3022 Broadway
New York, NY 10027
United States

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