Guy Mayraz

The Marginal Utility of Income

In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) measurement of inequality. We estimate this parameter using four large cross-sectional surveys of subjective happiness and two panel surveys. Altogether, the data cover over 50 countries and time periods between 1972 and 2005. In each of the six very different surveys, using a number of assumptions, we are able to estimate the elasticity of marginal utility with respect to income. We obtain very similar results from each survey. The highest (absolute) value is 1.34 and the lowest is 1.19, with a combined estimate of 1.26. The results are also very similar for subgroups in the population. We also examine whether these estimates (which are based directly on the scale of reported happiness) could be biased upwards if true utility is convex with respect to reported happiness. We find some evidence of such bias, but it is small—yielding a new estimated elasticity of 1.24 for the combined sample.

Late-life decline in well-being across adulthood in Germany, the United Kingdom, and the United States : Something is seriously wrong at the end of life

Throughout adulthood and old age, levels of well-being appear to remain relatively stable. However, evidence is emerging that late in life well-being declines considerably. Using long-term longitudinal data of deceased participants in national samples from Germany, the United Kingdom, and the United States, we examined how long this period lasts. In all 3 nations and across the adult age range, well-being was relatively stable over age but declined rapidly with impending death. Articulating notions of terminal decline associated with impending death, we identified prototypical transition points in each study between 3 and 5 years prior to death, after which normative rates of decline steepened by a factor of 3 or more. The findings suggest that mortality-related mechanisms drive late-life changes in well-being and highlight the need for further refinement of psychological concepts about how and when late-life declines in psychosocial functioning prototypically begin. (PsycINFO Database Record (c) 2010 APA, all rights reserved).

Late-Life Decline in Well-Being Across Adulthood in Germany, the UK, and the US: Something is Seriously Wrong at the End of Life

Throughout adulthood and old age, levels of well-being appear to remain relatively stable. However, evidence is emerging that late in life well-being declines considerably. Using long-term longitudinal data of deceased participants in national samples from Germany, the UK, and the US, we examine how long this period lasts. In all three nations and across the adult age range, well-being was relatively stable over age, but declined rapidly with impending death. Articulating notions of terminal decline associated with impending death, we identified prototypical transition points in each study between three and five years prior to death, after which normative rates of decline steepened by a factor of three or more. The findings suggest that mortality-related mechanisms drive late-life changes in well-being and highlight the need for further refinement of psychological concepts about how and when late-life declines in psychosocial functioning prototypically begin.

Recognizing handwritten digits using hierarchical products of experts

The product of experts learning procedure [1] can discover a set of stochastic binary features that constitute a non-linear generative model of handwritten images of digits. The quality of generative models learned in this way can be assessed by learning a separate model for each class of digit and then comparing the unnormalized probabilities of test images under the 10 different class-specific models. To improve discriminative performance, it is helpful to learn a hierarchy of separate models for each digit class. Each model in the hierarchy has one layer of hidden units and the nth level model is trained on data that consists of the activities of the hidden units in the already trained (n - 1)th level model. After training, each level produces a separate, unnormalized log probabilty score. With a three-level hierarchy for each of the 10 digit classes, a test image produces 30 scores which can be used as inputs to a supervised, logistic classification network that is trained on separate data. On the MNIST database, our system is comparable with current state-of-the-art discriminative methods, demonstrating that the product of experts learning procedure can produce effective generative models of high-dimensional data.

Construction of physical maps from oligonucleotide fingerprints data

A new algorithm for the construction of physical maps from hybridization fingerprints of short oligonucleotide probes has been developed. Extensive simulations in high-noise scenarios show that the algorithm produces an essentially completely correct map in over 95% of trials. Tests for the influence of specific experimental parameters demonstrate that the algorithm is robust to both false positive and false negative experimental errors. The algorithm was also tested in simulations using real DNA sequences of C. elegans, E. coli, S. cerevisiae, and H. sapiens. To overcome the non-randomness of probe frequencies in these sequences, probes were preselected based on sequence statistics and a screening process of the hybridization data was developed. With these modifications, the algorithm produced very encouraging results.

Construction of physical maps from oligonucleotide fingerprints data.

A new algorithm for the construction of physical maps from hybridization fingerprints of short oligonucleotide probes has been developed. Extensive simulations in high-noise scenarios show that the algorithm produces an essentially completely correct map in over 95% of trials. Tests for the influence of specific experimental parameters demonstrate that the algorithm is robust to both false positive and false negative experimental errors. The algorithm was also tested in simulations using real DNA sequences of C. elegans, E. coli, S. cerevisiae, and H. sapiens. To overcome the non-randomness of probe frequencies in these sequences, probes were preselected based on sequence statistics and a screening process of the hybridization data was developed. With these modifications, the algorithm produced very encouraging results.

INEQUALITY OF SUBJECTIVE WELL-BEING AS A COMPREHENSIVE MEASURE OF INEQUALITY: HAPPINESS INEQUALITY

If satisfaction with life (SWL) is used to measure individual well-being, its variance offers a natural measure of social inequality that includes all the various factors that affect well-being. As such, it may be a better proxy in estimating the effect of inequality on welfare than a more narrow measure of inequality, such as the inequality of income. We explore this possibility empirically and find: (i) that SWL levels are negatively correlated with SWL inequality, (ii) that this correlation is substantially stronger than the corresponding correlation with income inequality; (iii) that it is stronger for those who want inequality to be reduced, and (iv) that the correlation with SWL inequality extends to social trust and other contributors to well-being that are likely to be affected by inequality. While we cannot prove that the correlation is causal, we are able to reject the most likely alternative explanations. If the causal interpretation is correct, differences in SWL among rich countries have as much to do with differences in inequality as with differences in GDP.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

The emotional consequences of donation opportunities

Abstract Charities often circulate widespread donation appeals, but who is most likely to donate and how do appeals impact the well-being of individual donors and non-donors, as well as the entire group exposed to the campaign? Here, we investigate three factors that may influence donations (recent winnings, the presence of another person, and matched earnings) in addition to the changes in affect reported by individuals who donate in response to a charitable opportunity and those who do not. Critically, we also investigate the change in affect reported by the entire sample to measure the net impact of the donation opportunity. Results reveal that people winning more money donate a smaller percentage to charity, and the presence of another person does not influence giving. In addition, large donors experience hedonic boosts from giving, and the substantial fraction of large donors translates to a net positive influence on well-being for the entire sample.