Are Facets of Homo economicus Associated with Higher Earnings and Happiness?

Abstract

This paper investigates the individual outcomes of irrational thinking, including paranormality and non-scientific thinking. These modes of thinking were identified by factor analysis from a 2008 survey. Income and happiness are used as measures of performance. Empirical results reveal that non-scientific thinking lowers income, whereas paranormality does not affect it. While non-scientific thinking lowers happiness, paranormality raises it. Extending the model, we find that higher ability and self-control result in higher income and happiness. Selfishness raises income, but diminishes happiness. These results suggest that generally achieves higher individual performance except that belief in paranormality raises happiness.