We use an annual household panel to conduct a comparative analysis of which decision theory explains life satisfaction better. We consider expected utility theory and prospect theory. We consider the effects of three domains on life satisfaction: income, health, and (un)employment. Using a fixed effects estimator we find that life satisfaction contains features of both expected utility theory and prospect theory. However, the elements of expected utility theory are stronger predictors of life satisfaction. Life satisfaction depends positively on income, good health, and employment. It also depends positively on income and employment improvements, however the reverse is true for health improvements. Life satisfaction is concave in income gains and convex in income losses, and it exhibits loss aversion in income and employment status, but not in health. The results suggest that life satisfaction is best described by expected utility theory, but also contains some aspects of prospect theory.

我们使用年度家庭面板来比较分析哪种决策理论能更好地解释生活满意度。我们考虑预期效用理论和前景理论。我们考虑三个领域对生活满意度的影响：收入、健康和（失业）就业。使用固定效应估计，我们发现生活满意度包含预期效用理论和前景理论的特征。然而，预期效用理论的要素更能预测生活满意度。生活满意度与收入、健康状况和就业密切相关。它还积极依赖于收入和就业的改善，但健康改善则相反。生活满意度在收入收益上凹，在收入损失上凸，表现出对收入和就业状况的损失厌恶，但不健康。结果表明，生活满意度最好用期望效用理论来描述，但也包含了前景理论的某些方面。