Abstract
Following the work of Easterlin (1974, 1995, 2001), economists have become increasingly interested in the psychological phenomenon of adaptation. Using the language of economists, the hypotheses relating to adaptation state, first, that individuals’ subjective well-being depends not only on their current circumstances but also on their aspirations and, second, that, in turn, these aspirations depend on their own past circumstances, due to a process of habituation, and on the circumstances of those in their reference group, due to a tendency to make social comparisons.1 Evidence supporting these hypotheses has been presented by Stutzer (2004) using Swiss survey data on individuals’ subjective well-being, actual and aspired to income levels and personal characteristics and by Burchardt (2005) and Krause (2005) using similar data from the United Kingdom and Germany respectively.
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Barr, A., Clark, D.A. (2012). A Multidimensional Analysis of Adaptation in a Developing Country Context. In: Clark, D.A. (eds) Adaptation, Poverty and Development. Rethinking International Development Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137002778_5
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DOI: https://doi.org/10.1057/9781137002778_5
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