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Deconstructing the Hedonic Treadmill

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Author Info
Perez Truglia, Ricardo
Bottan, Luis

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Abstract

There is consent among psychologists and some economists that satisfaction from some events, like income and marriage, is adaptive. We propose a subtle but critical difference: happiness may itself be adaptive. We introduce a theoretical model to explain the emergence of adaptive stimuli. Then we test our hypotheses running dynamic happiness regressions based on panel data from the German Socio-Economic Panel Study, the British Household Panel Survey and the Swiss Household Panel. Surprisingly, the autoregressive component in the simplest models is positive and significant. We propose that the hedonic treadmill may be mixed with what we call the “scale treadmill”.

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File URL: http://mpra.ub.uni-muenchen.de/10268/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10268.

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Date of creation: Jun 2008
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Handle: RePEc:pra:mprapa:10268

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Related research
Keywords: happiness; hedonic adaptation; dynamic panel.;

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Find related papers by JEL classification:
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I00 - Health, Education, and Welfare - - General - - - General

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  1. Ruth A. Judson & Ann L. Owen, 1997. "Estimating dynamic panel data models: a practical guide for macroeconomists," Finance and Economics Discussion Series 1997-3, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
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