“…the evidence of
a lower volatility in well-being and a quick return to a baseline level of happiness
following a significantly bad life event (Graham
& Oswald, 2010; Perez-Truglia,
2012; Rayo & Becker, 2007). This recent surge of interest among economists is fuelled by the releases of new
longitudinal evidence of people adapting quickly and completely in terms of mental
well-being and life satisfaction to negative life shocks, including adaptation to
unemployment, disability, and bereavement (Clark,
Diener, Georgellis, & Lucas, 2008; Frijters, Johnston, & Shields, 2011; Oswald & Powdthavee, 2008), as well as by the potential implications
of how people adapt to bad shocks in life have in public policy and welfare
evaluation (Frederick & Loewenstein,
1999; Layard, 2006; Loewenstein & Ubel, 2008).…”