This paper introduces a simple model to estimate the dynamic adjustment of subjective well-being that results from an updating of expectations in response to changing circumstances. Empirical evidence indicates that adjustment takes place within a relatively short window of time.

Studies of the relative income hypothesis find positive and negative effects of relative income. To facilitate comparisons we use a large household panel and highlight the sensitivity of the relative income effect to the definition of the reference group and to the estimation strategy employed.

We test the effect of the solemn oath (HO) in Hypothetical CE Survey (CE). We conducted CE surveys with three treatments: (1) CE without a cognitive task, (2) CE with a CT script, and (3) CE with a HO. Results generally suggest lower WTPs values with the HO, than without the HO script.

This paper analyses the relation between unemployment, marriage, divorce, widowhood and subjective well-being using Russian panel data. Contrary to Clark et al. (2008) and Clark and Georgellis (2013), we find little evidence of adaptation to these life events.

To measure the effectiveness of programs with multiple outcomes, I combine multidimensional poverty measures with difference-in-difference matching estimators. I apply this technique on an anti-poverty program and show it is a more comprehensive measure of poverty reduction than a unidimensional...

The paper assesses perceived job insecurity as a determinant of current subjective well-being and demonstrates that standard models may yield significantly downward biased estimates.

A utilitarian social planner who maximizes social welfare assigns the available income to those who are most efficient in converting income into utility. However, when individuals are concerned about their income falling behind the incomes of others, the optimal income distribution under...