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This paper provides an empirical test of the rational addiction model, used in economics to model individuals' consumption of addictive substances, versus the utility misprediction model, used in psychology to explain the discrepancy between people's decision and their subsequent experiences. By...
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This paper asks whether the gap in subjective happiness between spouses matters per se, i.e. whether it predicts … household. The relation between happiness gaps and divorce may be due to the fact that couples which are unable to transfer … utility are more at risk than others. It may also be the case that assortative mating in terms of happiness baseline …
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Do people form correct expectations about the impact of retirement on their health? This paper looks at unexpected health shocks that hit people after they retire. Using data from the Household, Income and Labour Dynamics in Australia survey (waves 2001-2014), we construct measures of unexpected...
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