in Oxford Economic Papers
January 2012; p ublished online April 2011 .
Journal Article. Subjects: Econometric and Statistical Methods and Methodology: General; Fiscal Policies and Behaviour of Economic Agents; Econometric Modelling; Taxation, Subsidies, and Revenue. 5491 words.
We apply an optimizing model with relative comparisons (habit formation) in consumption and labour supply to the economics of happiness, specifically the ‘Easterlin paradox’. Studying a...