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We develop a theoretical model that jointly explains optimal choices and happiness. We work with constant elasticity of substitution functions for utility and happiness. Employing a choice framework, individuals are confronted with two options. When there exists a trade-off, we determine...
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lifestyles may contribute to life satisfaction. …
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estimated linear and non-linear associations of experiential and material expenditures with life satisfaction. Although both … experiential and material expenditures were positively associated with life satisfaction, evidence supporting the greater return … results of the non-linear estimates indicate that to maximize life satisfaction, an average person should allocate more money …
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This paper studies whether pro-environmental consumption choices are consistent with utility maximization and what role the consumption behavior of reference persons and one's own past behavior play in this context. By combining data on individuals' pro-environmental consumption from a unique...
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This paper looks at the association of specific consumption goods with subjective well-being (SWB), using a representative sample of US individuals. There is a vast economic literature on the relationship between income and SWB, but surprisingly very little on how individuals spend their income...
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