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Happiness adaptation to high income: Evidence from German panel data

Aufsätze referiert extern - Web of Science

Jianbo Luo

In: Economics Letters 206 (2021), 109995

Abstract

This paper is the first to use national representative panel data to demonstrate that individuals do not adapt to high income in the long run: after five or more years, the life satisfaction of high-income people is still higher than that of the average population. Using entropy balancing (EB) matching and Lasso variable selection to reweight the control group yields similar results.



Keywords: High income; Subjective well-being; Adaptation; Entropy balancing; Machine learning Lasso
DOI:
https://doi.org/10.1016/j.econlet.2021.109995

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