Notes to Pages 107–117- For details of the study, including variable definitions, see on-
line Annex 7. - See Lochner and Moretti (2004), Machin, Marie, and Vujic
(2011), Bell, Costa, and Machin (2016). See also Anderson (2014). - The standard deviation of life- satisfaction is 1.9.
- Dustmann and Fasani (2016). There have been many efforts to
put money values on the effects of crime; for a survey, see Soares (2010). - From Dustmann and Fasani’s (2016) table 3 column (1), GHQ =
.14 log (PCY) + etc. where C is the number of crimes, P is the population,
and Y is the number of years. Thus ΔGHQ = C/PY.14 (^) PY^1 ∆C. Using an av-
erage annual rate for C/PY of 0.09, this gives P Y.∆GHQ 1.5∆C. To
convert a change in GHQ (0– 10) to one in life- satisfaction (LS) we
note from Mukuria et al. (2016) that when GHQ is measured 0– 10,
∂GHQ^
∂LS = –0.21(3.6) = –0.75. So PY∆LS = –0.75 PY.∆GHQ –1.1∆C. Note
that since their table 3 uses panel data with a fixed effect, any effect
of crime on house prices (which is spread over many years) is largely
removed.
- The SD of arrests is 3.8. Interestingly adding a quadratic term in
arrests adds no explanatory power. - The ratio of 3.6/1 is for 2006/7 from Crime Survey for England
and Wales and Arrests Collection, Home Office.
Chapter 8. Social Norms and Institutions
- This chapter draws heavily on the great work done by John Helli-
well, Haifang Huang, and Shun Wang in each World Happiness Report. - See Putnam (2000).
- The question is “Please imagine a ladder/mountain with steps
numbered from zero at the bottom to ten at the top. Suppose we say
that the top of the ladder/mountain represents the best possible life
for you and the bottom of the ladder/mountain represents the worst
possible life for you. If the top step is 10 and the bottom step is 0, on
which step of the ladder/mountain do you feel you personally stand at
the present time?” The corresponding response categories range from 0
(Worst possible life) to 10 (Best possible life). - The ranges of values for these variables are: Trust 0.07– 0.64;
Generosity 0.16– 0.54; Social support 0.29– 0.99; and Freedom 0.26–
0.98. See Helliwell, Huang, and Wang (2016), appendix table 5. - In each World Happiness Report you can see how each vari-
able contributes to life- satisfaction in each individual country. Note
that if we take the worldwide variance of the Cantril ladder across all