%0 Report
        %A Graham, Liam
%A Oswald, Andrew J.
        %T Hedonic Capital
        %D 2006
        %8 2006 Apr
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2079
        %U https://www.iza.org/index.php/publications/dp2079
        %X This paper proposes a new way to think about happiness. It distinguishes between stocks and flows. Central to the analysis is a concept we call ‘hedonic capital’. The paper sets out a model of the dynamics of wellbeing in which bad life-shocks are smoothed by the drawing down of hedonic capital. The model fits the patterns found in the empirical literature: the existence of a stable level of wellbeing and a tendency to return gradually towards that level. It offers a theory of hedonic adaptation.
        %K adaptation
%K wellbeing
%K evolution
%K happiness
%K habituation