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Happiness as a Driver of Risk-avoiding Behaviour: Theory and an Empirical Study of Seatbelt Wearing and Automobile Accidents

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Goudie, RJB 
Mukherjee, S 
de Neve, JE 
Oswald, AJ 
Wu, S 

Abstract

jats:pGovernments try to discourage risky health behaviours, yet such behaviours are bewilderingly persistent. We suggest a new conceptual approach to this puzzle. We show that expected utility theory predicts that unhappy people will be attracted to risk‐taking. Using US seatbelt data, we document evidence strongly consistent with that prediction. We exploit various methodological approaches, including Bayesian model selection and instrumental variable estimation. Using road accident data, we find strongly corroborative longitudinal evidence. Government policy may thus have to change. It may need to improve the underlying happiness of individuals instead of, or in addition to, its traditional concern with society's risk‐taking symptoms.</jats:p>

Description

Keywords

38 Economics, 3801 Applied Economics, Generic health relevance, 3 Good Health and Well Being

Journal Title

Economica

Conference Name

Journal ISSN

0013-0427
1468-0335

Volume Title

81

Publisher

Wiley