Which choices merit deference? A comparison of three behavioural proxies of subjective welfare

Author:

Ferreira João V.ORCID

Abstract

AbstractRecently several authors have proposed proxies of welfare that equate some (as opposed to all) choices with welfare. In this paper, I first distinguish between two prominent proxies: one based on context-independent choices and the other based on reason-based choices. I then propose an original proxy based on choices that individuals state they would want themselves to repeat at the time of the welfare/policy evaluation (confirmed choices). I articulate three complementary arguments that, I claim, support confirmed choices as a more reliable proxy of welfare than context-independent and reason-based choices. Finally, I discuss the implications of these arguments for nudges and boosts.

Publisher

Cambridge University Press (CUP)

Subject

Economics and Econometrics,Philosophy

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