Housing wealth effect often manifests as a positive relationship between consumption and perceived housing wealth (e.g., the perceived value of houses). When the perceived value of a property rises, homeowners may feel more comfortable and secure about their wealth, causing them to spend more....

Using models from the happiness and the behavioural economics literature, we develop an analytical framework to investigate the relationship between housing wealth and residential satisfaction. Two hypotheses, i.e., social comparison and adaptation, are tested by using household panel survey...

Loss aversion is a core concept in prospect theory that refers to people's asymmetric attitudes with respect to gains and losses. More specifically, losses loom larger than gains. With the capability of loss aversion to explain economic phenomena, some of which are puzzling under expected...