TY  - RPRT
        AU  - Oswald, Andrew J.
AU  - Powdthavee, Nattavudh
        TI  - Does Happiness Adapt? A Longitudinal Study of Disability with Implications for Economists and Judges
        PY  - 2006/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2208
        UR  - https://www.iza.org/publications/dp2208
        AB  - Economics ignores the possibility of hedonic adaptation (the idea that people bounce back from utility shocks). This paper argues that economists are wrong to do so. It provides longitudinal evidence that individuals who become disabled go on to exhibit recovery in mental wellbeing. Adaptation to severe disability, however, is shown to be incomplete. The paper suggests ways to calculate the level of compensatory damages for the pain and suffering from disablement. Courts all over the world currently use ad hoc methods.
        KW  - disability
KW  - adaptation
KW  - happiness
KW  - legal compensation
KW  - wellbeing
KW  - GHQ scores
        ER  -