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An Investigation into Happiness, Dynamics and Adaptation

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  • Piper, Alan T.

Abstract

This investigation discusses and employs dynamic panel analysis to provide new insights into the concept of happiness, and particularly its dynamics. Arguments are advanced for its use both in terms of the advantages such analysis offers, and also because it takes into account dynamics omitted by more standard panel data estimation methods like fixed effects. Using the British Household Panel Survey, it is demonstrated that happiness is largely (but not wholly) contemporaneous. This helps to provide explanations for previous findings, inform the adaptation discussion, and generate new understanding regarding well-being. An event – no matter when entered into - must have a contemporaneous impact on either the life of an individual or an individual’s perception of their life (or both) for it to be reflected in self-reported life satisfaction scores. Similarly, this contemporaneous finding also explains other results in the literature about the well-being legacy of events.

Suggested Citation

  • Piper, Alan T., 2014. "An Investigation into Happiness, Dynamics and Adaptation," MPRA Paper 57778, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:57778
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    File URL: https://mpra.ub.uni-muenchen.de/57778/1/MPRA_paper_57778.pdf
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    References listed on IDEAS

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    Cited by:

    1. Alan Piper, 2014. "Zukunftsangst! Fear of (and Hope for) the Future and Its Impact on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 706, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Life Satisfaction; Dynamic Panel Analysis; GMM; Adaptation; Happiness;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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