The Heterogeneity of Wellbeing 'Expenditure' Preferences: Evidence from a Simulated Allocation Choice on the BES Indicators

63 Pages Posted: 25 Oct 2013 Last revised: 3 Mar 2014

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Luisa Corrado

University of Rome Tor Vergata Department of Economics and Finance

Maurizio Fiaschetti

University of Nottingham

Date Written: October 24, 2013

Abstract

With an online survey on major Italian newspapers we ask respondents to simulate the typical policymaker decision, that is, the dilemma of allocating scarce financial resources among alternative competing goals using the domains of the newly defined Italian BES (sustainable and equitable wellbeing) indicators. We find that two major factors explaining heterogeneity in preferences on expenditure in major wellbeing domains are left/right wing political orientation and low/high education. With regard to political orientation we identify “large coalition” items where left/right positions are similar and domains where opinion are more polarized. Overall, our findings document that left wing respondents would spend relatively more on environment, research and innovation, culture and education and relatively less on safety and measures directly aimed at improving economic wellbeing. We conclude that these findings make themselves significantly more oriented toward environmental sustainability in a hypothetical trade‐off between economic growth and the latter.

Keywords: wellbeing indicators, political preferences, wellbeing preferences

JEL Classification: I0, H0

Suggested Citation

Becchetti, Leonardo and Corrado, Luisa and Fiaschetti, Maurizio, The Heterogeneity of Wellbeing 'Expenditure' Preferences: Evidence from a Simulated Allocation Choice on the BES Indicators (October 24, 2013). CEIS Working Paper No. 297. Available at SSRN: https://ssrn.com/abstract=2344695 or http://dx.doi.org/10.2139/ssrn.2344695

Leonardo Becchetti (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Luisa Corrado

University of Rome Tor Vergata Department of Economics and Finance ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Maurizio Fiaschetti

University of Nottingham ( email )

Business School North
Wollaton Road
Nottingham, NG81BB
United Kingdom
+44 (0) 115 8467420 (Phone)

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