Teaching Evaluations Please do fill your teaching evaluations 25 minutes of your time could be 25...

Preview:

Citation preview

Teaching Evaluations Please do fill your teaching evaluations

25 minutes of your time could be 25 minutes well spent

and very much appreciated

www.Ratemyprofessors.com

www.Studentsreview.com

www.myprofessorsucks.com

1 04/18/23Behavioral Finance

Happiness What makes us happy?

Do we really know what makes us happy?

How to be happier

Money and Happiness

2 04/18/23Behavioral Finance

Happiness across the world

Also, it seems like American men got happier, but American women did not

3 04/18/23Behavioral Finance

Does Wealth Make Us Happy?

4

Wealth?

04/18/23Behavioral Finance

5

Income and Happiness

The belief is that by raising its output and productivity a society truly betters itself …The truth is individual happiness appears to be the same across poor countries and rich countries, additionally economic growth does not raise well-being: once the GDP per capita increases above about 12K $/ year there’s barely increase in happiness.

04/18/23Behavioral Finance

Employment and Happiness

6

Unemployed feel much less satisfied with life. However, the decrease in well-being comes not from losing one’s job and drop in take-home income, but rather a non-pecuniary distress.

04/18/23Behavioral Finance

If you are so rich why commit suicide?

7

Denmark: 1/3.000 deaths; Britain: 1/12.000; USA: 1/7.000 In Britain a fifth of all emergency admissions to hospital are du to para-suicide (suicide which

did not work out); between 8 to 20 times more common the successful suicide. At the same time suicidal rates about halved in Britain between 1911 and 1990. Joblessness is the main cause of suicide: 1.345/100.000 vs 114/100.000 for employed

04/18/23Behavioral Finance

Job Satisfaction and Happiness

8

Job satisfaction has not increased in US and UK over time

04/18/23Behavioral Finance

Why Wealth Does not Make Us Happy

9

1) Happiness is a relative phenomenon. Earning more or less does not matter in isolation; what is important is how much you earn relatively to your neighbors. As the wealth of the economy increases the relative ranking of people in the economy does not change.

2) individuals adapt to materials goods and, some argue, that material goods yield little joy for most individuals. Thus, increases in incomes have little long-lasting effects above certain levels of consumption.

3) As income raises peoples time use does not appear to shift toward activities that are associated with improved affect. Subjective well-being is related to how people spend their time. People with greater income tend to devote relatively more time to their work., compulsory non-work activities (such as shopping and childcare), and active leisure (such as exercise) and less of their time to passive leisure activities (such as watching TV). Thus the activities that higher-income individuals spend relatively more their time engaged in are associated with no greater happiness, on average, but with slightly higher tension and stress.

04/18/23Behavioral Finance

10

How to Spend Your Time to Be Happier

04/18/23Behavioral Finance

Does Marriage Make Us Happy?

11

Wealth?

Marriage?

04/18/23Behavioral Finance

12

Marriage and Happiness

04/18/23Behavioral Finance

Does Youth Make Us Happy?

13

Wealth?

Marriage? Youth?

04/18/23Behavioral Finance

Youth and Happiness

14 04/18/23Behavioral Finance

Does Education Make Us Happy?

15

Wealth?

Marriage? Youth?

Education?

04/18/23Behavioral Finance

Education and Happiness

There is no effect on happiness across countries and only a small effect within countries

16 04/18/23Behavioral Finance

Do Looks Make Us Happy?

17

Wealth?

Marriage? Youth?

Looks?

Education?

04/18/23Behavioral Finance

Looks and HappinessLooks don’t make us happy after taking away

the hair, makeup, jewelry and nice clothing

18 04/18/23Behavioral Finance

Does Gender Have Effect on Happiness?

19

Wealth?

Marriage? Youth?

Education?

Looks?

Gender?04/18/23Behavioral Finance

Gender and Happiness

Men are more prone to alcoholism, while women to depression

20 04/18/23Behavioral Finance

Does Religion Make Us Happy?

21

Wealth?

Marriage? Youth?

Looks?

Gender? Religion?

Education?

04/18/23Behavioral Finance

Religion and Happiness

Religion does make us happy…but why?

Is it the “God” part which makes us happy, or the “community” part?

22 04/18/23Behavioral Finance

Does Family Make Us Happy?

23

Wealth?

Marriage? Youth?

Looks?

Religion?

Family?

Education?

Gender?

04/18/23Behavioral Finance

Family and Happiness

People with the highest levels of happiness have strong social relationships

24 04/18/23Behavioral Finance

Do These Things Make Us Happy?

25

Wealth?

Marriage? Youth?

Looks?

Religion?

Family?

Education?

Gender?

04/18/23Behavioral Finance

Long Term vs. Short Term HappinessLife satisfaction vs. experienced happiness: “In the moment” and “Morning after” have very different levels of happiness Momentary happiness and life satisfaction could be dramatically different too Obese people love to eat the food they do…but are not happy with their overall life

26 04/18/23Behavioral Finance

The Focusing Illusion We fail to recognize that people do not continuously think about their

circumstances, whether positive or negative As a result, we tend to exaggerate the effect of various circumstances on

well-being Paraplegics are not as miserable as you think and lottery winners are not as

happy as you think

27 04/18/23Behavioral Finance

What We’ve Learned So FAr What makes us happy? Do we know what makes us happy? How to be happier

How to spend your time Positive psychology

28 04/18/23Behavioral Finance

Money and Happiness: Economist Advice

29

More is Better!

04/18/23Behavioral Finance

Money and Happiness: Alternative View

30

One analogy A person that loves wooden blocks becomes bored playing with the ones he has

had for a while

How can we make him happier? A solution from Economics: Acquire more blocks! A solution from Hedonomics: Learn to combine the blocks in new and more

satisfying ways!

04/18/23Behavioral Finance

Choose a reference point wisely

31

Changing reference points can change the way you perceive your well-being: Don’t compare yourself to your BA classmates…but your high school

classmates

Reference point can be real or counterfactual:

Are Olympic bronze medalists happier than silver medalists?

04/18/23Behavioral Finance

BMW X3 and Free Gas for 7 Years BMW X5

$46,200 $46,200

32

More Happiness Can Be Achieved with Same Money

Consider opportunity costs

04/18/23Behavioral Finance

Investment can be funCreate multiple accounts

Nest-egg account managed by professionals and kept largely out of sight

Have fun account managed by investor with low transactions costs and lots of feedback (although perhaps with limits on leverage and non-zero liability investments)

Potential benefits of these accounts: Investors get to have fun (and possibly make some money) At the same time, they are protected from the downside of the natural desire

to meddle

33 04/18/23Behavioral Finance

Recommended