Income-happiness paradox in Australia: Testing the theories of adaptation and social comparison

Economic Modelling

Volumn 30, Issue 1, 2013, Pages 900-910

  Paul, Satya ^a   Guilbert, Daniel ^a  

^a UNIVERSITY OF WESTERN SYDNEY   (Australia)

Author keywords

Adaptation; Comparison income; Easterlin paradox; Life satisfaction

Indexed keywords

EID: 84870935872     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econmod.2012.08.034     Document Type: Article

References (42)

1. Australian Bureau of Statistics Consumer Price Index, Australia. Catalogue No. 6401.0 2007.
2. Becchetti L., Trovato G., Bedoya D.A. Income, relational goods and happiness. Applied Economics 2011, 43:273-290.
3. Blanchflower D.G., Oswald A.J. Well-being over time in Britain and the USA. Journal of Public Economics 2004, 88(7-8):1359-1386.
4. Bossert W., Ambrosio C. Dynamic measures of individual deprivation. Social Choice and Welfare 2007, 28:77-88.
5. Brickman P., Coates D., Janoff-Bulman R. Lottery winners and accident victims: is happiness relative?. Journal of Personality and Social Psychology 1978, 36(8):917-927.
6. Carroll N. Unemployment and psychological well-being. The Economic Record 2007, 83(262):287-302.
7. Clark A.E., Oswald A.J. Happiness and unemployment. The Economic Journal 1994, 104(424):648-659.
8. Clark A.E., Oswald A.J. Satisfaction and comparison income. Journal of Public Economics 1996, 61(3):359-381.
9. Clark A.E., Frijters P., Shields M. Relative income, happiness and utility: an explanation for the Easterlin paradox and other puzzles. Journal of Economic Literature 2008, 46(1):95-144.
10. Di Tella R., MacCulloch R., Oswald A.J. The macroeconomics of happiness. The Review of Economics and Statistics 2003, 85(1):809-827.
11. Di Tella R., Haiskens-De New J., MacCulloch R. Happiness adaptation to income and to status in an individual panel 2007, (NBER Working Paper # W13159, June).
12. Dockery A.M. Happiness, life satisfaction and the role of work: evidence from two Australian surveys 2003, Curtin University of Technology, (Working paper # 03/10).
13. Duesenberry J.S. Income, saving and the theory of consumer behaviour 1949, Harvard University Press, Cambridge, MA.
14. Easterlin R. Does economic growth improve the human lot?. Nations and households in economic growth: essays in the honor of Moses Abramovitz 1974, Academic Press, New York. P.A. David, M.W. Reder (Eds.).
15. Easterlin R. Will raising the incomes of all increase the happiness of all?. Journal of Economic Behavior and Organization 1995, 27(1):35-47.
16. Easterlin R., Angelescu L. Happiness and growth the world over: time series evidence on the happiness-income paradox 2009, (IZA Discussion Paper # 460, March).
17. Ferrer-i-Carbonell A. Income and well-being: an empirical analysis of the comparison income effect. Journal of Public Economics 2005, 89(5-6):997-1019.
18. Ferrer-i-Carbonell A., Frijters P. How important is methodology for the estimates of the determinants of happiness?. The Economic Journal 2004, 114(497):641-659.
19. Gilbert D. Stumbling on happiness 2006, Harper Press, London.
20. Headey B., Wooden M. The effects of wealth and income on subjective well-being and ill-being. Economic Record 80, September, Special Issue 2004, S24-S33.
21. Hsiao C. Analysis of panel data 1986, Cambridge University Press, New York.
22. Inglehart R., Klingemann H.D. Genes, culture, democracy, and happiness. Culture and subjective well-being 2000, MIT Press, Cambridge. E. Diener, E.M. Suh (Eds.).
23. Jeon S., Fok Y.K. Work and mental well-being: work stress and mental well-being of the Australian working population 2009, (Project # 5/08), Melbourne Institute of Applied Economic and Social Research, (June).
24. Jørgensen C.B., Herby J. Do people care about relative income? 2004, Centre for Economic and Business Research, University of Copenhagen, (Student Paper 2004-01).
25. Layard R. Happiness: lessons from a new science 2005, Penguin Books, London.
26. Luttmer E. Neighbours as negatives: relative earnings and wellbeing. Quarterly Journal of Economics 2005, 120(3):963-1002.
27. McBride M. Relative-income effects on subjective well-being in the cross-section. Journal of Economic Behavior and Organization 2001, 45(3):251-278.
28. Miles D., Rossi M. Learning about one's relative position and subjective well-being. Applied Economics 2007, 39(13):1711-1718.
29. Mundlak Y. On the pooling of time series and cross section data. Econometrica 1978, 46(1):69-85.
30. Neumark D., Postlewaite A. Relative income concerns and the rise in married women's employment. Journal of Public Economics 1998, 70(1):157-183.
31. Paul S. An index of relative deprivation. Economics Letters 1991, 36:567-573.
32. Paul S. An illfare approach to the measurement of unemployment. Applied Economics 1992, 24:737-743.
33. Paul S. A welfare loss measure of unemployment with an empirical illustration. The Manchester School 2001, 69(2):148-163.
34. Runciman W. Relative deprivation and social justice 1966, Routledge and Kegan Paul, London.
35. Schimmack U. Internal and external determinants of subjective well-being: review and policy implications. Happiness and public policy: theory, case studies and implications 2006, Palgrave Macmillan, New York. Y.K. Ng, L.S. Ho (Eds.).
36. Senik C. When information dominates comparison: learning from Russian subjective panel data". Journal of Public Economics 2004, 88(8-9):2099-2123.
37. Solnick S.J., Hemenway D. Is more always better? A survey on positional concerns. Journal of Economic Behavior and Organization 1998, 37(3):373-383.
38. Stutzer A. The role of income aspirations in individual happiness. Journal of Economic Behavior and Organization 2004, 54(1):89-109.
39. Stutzer A., Frey Buno S. Reported subjective well-being: a challenge for economic theory and economic policy. Schmollers Jahrbuch 2004, 124(2):191-231.
40. van de Stadt H., Kapteyn A., van de Geer S. The relativity of utility: evidence from panel data. The Review of Economics and Statistics 1985, 67(2):179-187.
41. Wilkins R. Updates and revisions to estimates of income tax and government benefits 2009, (Hilda Project Discussion Paper Series # 1/09, February), Melbourne Institute of Applied Economic and Social Research, Melbourne University.
42. Yitzhaki S. Relative deprivation and the Gini coefficient. Quarterly Journal of Economics 1979, 93:321-324.