Publication type
Journal Article
Authors
Publication date
August 15, 2017
Summary:
Using panel data from the UK, we study the long-term effect of purchase decisions of automobiles on individuals’ happiness. We find a significant and sizable decrease in individual happiness in the years after a car purchase. We develop a model of hedonic adaptation that can explain these results. Applying the model to the data indicates a strong degree of habit persistence of around 80%, and that within five years after a purchase, around one third of the happiness increase is dissipated due to hedonic adaptation.
Published in
Journal of Economic Psychology
Volume and page numbers
Volume: 61 , p.29 -38
DOI
http://dx.doi.org/10.1016/j.joep.2017.02.014
ISSN
1674870
Subjects
#524298