Di Tella, Rafael; Haisken-DeNew, John P.; MacCulloch, Robert - 2007
We study "habituation" to income and to status using individual panel data on the happiness of 7,812 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 the hypothesis of no adaptation to income (status) during the four years …