<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Abstract: The paper consists of a discussion on the relevance of non-income drivers of welfare. This discussion is based on a subjective Bayesian reasoning, where welfare perceptions are subjectively rational decisions of individuals, who are, as author suggests, the ultimate decision-makers in respect of what welfare actually means for them. The objective of the paper is to investigate if income should be taken for granted as a sole driver of welfare. The conclusion is drawn from a methodological investigation of this question in a Bayesian concept of probability with a consideration for correlations among income and non-income drivers of welfare. It suggests that income should not be taken for granted as a sole driver of welfare since the non-income factors, which are not correlated with income, appear to be relevantly affecting individuals’ perceptions of welfare with Bayesian probability of almost 65%. Thereby, the paper is a reaffirmation of a need for further research in the area of welfare measures that might constitute an alternative to income-dominated indicators. Its value emanates from unambiguous answer in favour of the relevance of non-income drivers across welfare perceptions, which, without Bayesian reasoning, could remain unsolved at the point of 50% odds for relevance (irrelevance).</p></abstract>

Abstract: The paper consists of a discussion on the relevance of non-income drivers of welfare. This discussion is based on a subjective Bayesian reasoning, where welfare perceptions are subjectively rational decisions of individuals, who are, as author suggests, the ultimate decision-makers in respect of what welfare actually means for them. The objective of the paper is to investigate if income should be taken for granted as a sole driver of welfare. The conclusion is drawn from a methodological investigation of this question in a Bayesian concept of probability with a consideration for correlations among income and non-income drivers of welfare. It suggests that income should not be taken for granted as a sole driver of welfare since the non-income factors, which are not correlated with income, appear to be relevantly affecting individuals’ perceptions of welfare with Bayesian probability of almost 65%. Thereby, the paper is a reaffirmation of a need for further research in the area of welfare measures that might constitute an alternative to income-dominated indicators. Its value emanates from unambiguous answer in favour of the relevance of non-income drivers across welfare perceptions, which, without Bayesian reasoning, could remain unsolved at the point of 50% odds for relevance (irrelevance).

Should income be taken for granted as a sole driver of welfare? Bayesian insight on the relevance of non-income drivers of welfare

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Abstract: The paper consists of a discussion on the relevance of non-income drivers of welfare. This discussion is based on a subjective Bayesian reasoning,...

Should income be taken for granted as a sole driver of welfare? Bayesian insight on the relevance of non-income drivers of welfare

Article Category: Research Article

Published Online: Mar 29, 2018

Page range: 58 - 68

Received: Nov 21, 2017

Accepted: Mar 16, 2018

DOI: https://doi.org/10.2478/ijme-2018-0006

Keywords
welfare, non-income welfare, subjectivism of welfare, drivers of welfare, welfare perception, welfare measurement, Bayesian probability

© 2018 Tomasz P. Wiśniewski, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Should income be taken for granted as a sole driver of welfare? Bayesian insight on the relevance of non-income drivers of welfare

Article Category: Research Article

Published Online: Mar 29, 2018

Page range: 58 - 68

Received: Nov 21, 2017

Accepted: Mar 16, 2018

DOI: https://doi.org/10.2478/ijme-2018-0006

Keywordswelfare, non-income welfare, subjectivism of welfare, drivers of welfare, welfare perception, welfare measurement, Bayesian probability

© 2018 Tomasz P. Wiśniewski, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
welfare, non-income welfare, subjectivism of welfare, drivers of welfare, welfare perception, welfare measurement, Bayesian probability