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Hedonic capital, adaptation and resilience

Author

Listed:
  • Liam Graham

    (Department of Economics - University of Warwick [Coventry])

  • Andrew J. Oswald

    (Department of Economics - University of Warwick [Coventry])

Abstract

The paper sets out a theory of hedonic adaptation and resilience. By distinguishing between stocks and flows of psychological resources, it suggests a new way to think about the dynamics of human well-being or 'happiness'. Central to the analysis is a concept we refer to as . We build on the idea that the evolutionary function of happiness is as a motivating device. Our model successfully replicates the patterns routinely found in well-being data-particularly the empirical regularity of an approximately stable level of well-being and the adaptive tendency to return towards that level. The formal model provides a number of testable empirical predictions.

Suggested Citation

  • Liam Graham & Andrew J. Oswald, 2010. "Hedonic capital, adaptation and resilience," Post-Print hal-00870190, HAL.
    • Handle: RePEc:hal:journl:hal-00870190
    DOI: 10.1016/j.jebo.2010.07.003
    Note: View the original document on HAL open archive server: https://hal.science/hal-00870190
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    More about this item

    Keywords

    I3; Adaptation; well-being; evolution; happiness; habituation; resilience; D1; I3.;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D1 - Microeconomics - - Household Behavior

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