Subjective well-being (SWB) is increasingly recognized as a vital complement to traditional economic indicators like GDP, offering a nuanced perspective on societal progress by capturing individuals' own assessments of their quality of life. Fischer (2009) distinguishes between the affective component (emotions and moods) and the cognitive component (life satisfaction), noting that each has unique implications for policy. While GDP emphasizes consumption, SWB incorporates aspects such as social cohesion, mental health, and environmental quality, which are often overlooked in economic metrics. The paper underscores the methodological challenges of measuring SWB, including issues of validity, reliability, and cultural bias, and argues for integrating these measures into policy evaluation frameworks to better capture the well-being of populations.
Fischer, J.A.V., 2009. Subjective Well-Being as Welfare Measure: Concepts and Methodology. OECD, Paris. Munich Personal RePEc Archive, MPRA Paper No. 16619.
