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Adaptation to Income Over Time: A Weak Point of Subjective Well-Being

Year:    2009

Author:    Wunder, Christoph

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 129 (2009), Iss. 2 : pp. 269–281

Abstract

This article holds the view that intertemporal comparisons of subjective well-being measures are only meaningful when the underlying standards of judgment are unaltered. This is a weak point of such measures. The study investigates the change in the satisfaction judgments resulting from adaptation to income over time. Adaptation is defined to be desensitization (sensitization) to the hedonic effect of income resulting from an upward (downward) adjustment of the standards. A framework is introduced that provides empirical estimates for the rate of adaptation using data from the Socio-Economic Panel Study (SOEP).

Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/schm.129.2.269

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 129 (2009), Iss. 2 : pp. 269–281

Published online:    2009-04

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    13

Keywords:    C23 I31

Author Details

Wunder, Christoph

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