Happiness Report from the Gallup World Poll shifted much in response to negative shocks. The HDI has been rising in the last …

-reported happiness. We relate our empirical findings to existing models of elation, reference dependence, and belief formation. In … motivated beliefs), we provide novel results that extend the literature in four dimensions. First, happiness responds to changes …, expectations affect happiness in a nonlinear way, consistent with Gul's model of disappointment aversion, but contrary to other …

Happiness data--survey respondents' self-reported well-being (SWB)--have become increasingly common in economics …