Income, aspirations and the Hedonic Treadmill in a poor society

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2012
Volume: 82
Issue: 1
Pages: 67-81

Authors (2)

Knight, John (Oxford University) Gunatilaka, Ramani (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A specially designed household survey for rural China is used to analyse the determinants of aspirations for income, proxied by reported minimum income need, and the determinants of subjective well-being, both satisfaction with life and satisfaction with income. It is found that aspiration income is a positive function of actual income and reference income, and that subjective well-being is raised by actual income but lowered by aspiration income. These findings suggest the existence of a partial ‘Hedonic Treadmill’, and can help to explain why subjective well-being in China appears not to have risen despite rapid economic growth.

Technical Details

RePEc Handle
repec:eee:jeborg:v:82:y:2012:i:1:p:67-81
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25