Who wants price stability?

Beja, Edsel Jr. (2012): Who wants price stability?

Abstract

The paper uses the "subjective well-being as input" framework to examine how life satisfaction and other life circumstances might affect the consideration of price stability. Results show that people who experience negative or adverse situations are more likely to attend to negative matters like rising prices, which implies price instability; those who experience positive or favorable situations are likely to worry less about price stability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Price stability; preference; subjective well-being
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General

References

Bower, G., 1981, Mood and memory, American Psychologist, 36(2), 129-148

Di Tella, R., MacCulloch, R., Oswald, A., 2001, Preferences of inflation and unemployment: Evidence from surveys of happiness, American Economic Review, 91(1), 335-341

Diener, E., 1984, Subjective well-being, Psychological Bulletin, 95(2), 542-575

Diener, E., Suh, E., Lucas, R., Smith, H., 1999, Subjective well-being: Three decades of progress, Psychological Bulletin, 125(2), 276-302

Hirt, E., Melton, R., McDonald, H., Harackiewicz, J., 1996, Processing goals, task interest, and the mood-performance relationship: A mediational analysis, Journal of Personality and Social Psychology, 71(2), 245-261

Isen, A., Shalker, T., Clark, M., Karp, L. ,1978, Affect, accessibility of material in memory, and behavior: A cognitive loop?, Journal of Personality and Social Psychology, 36(1), 1-12

Kahneman, D., Wakker, P., Sarin R., 1997, Back to Bentham? Explorations on experienced utility, Quarterly Journal of Economics, 112(2), 375-405

Veenhoven, R., 1991, The utility of happiness, Social Indicators Research, 20(4), 333-354