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Deconstructing the Hedonic Treadmill

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Author Info
Perez Truglia, Ricardo Nicolas
Bottan, Nicolas 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 vital difference: happiness may itself be adaptive. First we present a model to explain the emergence of adaptive stimuli. We test our hypotheses running dynamic happiness regressions based on data from the German Socio-Economic Panel Study, the British Household Panel Survey and the Swiss Household Panel. Surprisingly, the autoregressive component is positive and significant in most econometric models considered. 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/10269/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10269.

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Date of creation: 15 Aug 2008
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Handle: RePEc:pra:mprapa:10269

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Related research
Keywords: happiness; 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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This page was last updated on 2009-12-1.


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