Around 1 month ago, I wrote a similar Forum post on the Easterlin Paradox. I decided to take it down because: 1) after useful comments, the method looked a little half-baked; 2) I got in touch with two academics – Profs. Caspar Kaiser and Andrew Oswald – and we are now working on a paper together using a related method.
That blog post actually came to the opposite conclusion, but, as mentioned, I don't think the method was fully thought through.
I'm a little more confident about this work. It essentially summarises my Undergraduate dissertation. You can read a full version here. I'm hoping to publish this somewhere, over the Summer. So all feedback is welcome.
TLDR
* Life satisfaction (LS) appears flat over time, despite massive economic growth — the “Easterlin Paradox.”
* Some argue that happiness is rising, but we’re reporting it more conservatively — a phenomenon called rescaling.
* I test this hypothesis using a large (panel) dataset by asking a simple question: has the emotional impact of life events — e.g., unemployment, new relationships — weakened over time? If happiness scales have stretched, life events should “move the needle” less now than in the past.
* That’s exactly what I find: on average, the effect of the average life event on reported happiness has fallen by around 40%.
* This result is surprisingly robust to various model specifications. It suggests rescaling is a real phenomenon, and that (under 2 strong assumptions), underlying happiness may be 60% higher than reported happiness.
* There are some interesting EA-relevant implications for the merits of material abundance, and the limits to subjective wellbeing data.
1. Background: A Happiness Paradox
Here is a claim that I suspect most EAs would agree with: humans today live longer, richer, and healthier lives than any point in history. Yet we seem no happier for it. Self-reported life satisfaction (LS), usually measured on a 0–10 scale, has remained remarkably flat over the last f
Predict your year in 2025: a website for tracking your forecasts
2024 is over. Did your life this year align with your expectations? What came out of nowhere and threw off your predictions? Did your actions align with your intentions? What fresh goals are you planning?
We've built predict your year in 2025, a space for you to write down your predictions for the year. At the end of your year, you can return, resolve your predictions as YES, NO or AMBIGUOUS, and reflect.
We've written some starter questions to make it super easy to get started predicting your year. You can tweak these and write your own - those will likely be the most important questions for you.
You can use this tool to predict your personal life in 2025 - your goals, relationships, work, health, and adventures. If you like, you can share your predictions with friends - for fun, for better predictions, and for motivation to achieve your goals this year!
You can also use this tool to predict questions relevant to your team or organisation in the coming year - your team strategy, performance, big financial questions, and potentially disruptive black swans. You can share your predictions with your team and let everyone contribute, to build common knowledge about expectations and pool your insights.
If you use Slack, you can also share your page of predictions in a Slack channel (e.g. #2025-predictions or #strategy), so everyone can easily discuss in threads and return to it throughout the year.
I hope you have a good time thinking about your coming year, and that it sparks some great conversations with friends and teammates.
Happy new year!
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10 quick Fermi estimation questions to help you train your skills.