Di Tella, Rafael; Haisken-De New, John; MacCulloch, Robert - In: Journal of Economic Behavior & Organization 76 (2010) 3, pp. 834-852
We study adaptation to income and to status using individual panel data on the happiness of 7812 people living in Germany from 1984 to 2000. Specifically, we estimate a "happiness equation" defined over several lags of income and status and compare the long-run effects. We can (cannot) reject...