equivalents it then calculates how much individual welfare is affected in each economy by unexpected losses and gains of wealth. …

. -- habit formation ; happiness ; welfare ; economic growth … equivalents it then calculates how much individual welfare is affected in each economy by unexpected losses and gains of wealth …

equivalents it then calculates how much individual welfare is affected in each economy by unexpected losses and gains of wealth …

We posit that feeling constrained impedes happiness. Under this view, utility and happiness maximization yield the same … optimal choices in a variety of standard economic decision problems, but utility and happiness can move in opposite directions … in response to exogenous shocks. Our theory (i) respects economists' and psychologists' notions of utility and happiness …

This paper investigates the impact of tax reforms on capital accumulation and welfare in both a model without habits … (benchmark model) and a model with habits. In the benchmark model, the examined tax reforms generally lead to higher welfare. In … contrast, in the model with habits the same tax changes may imply lower levels of welfare (efficiency). The paper highlights …