 Evolutionary efficiency and distributive effects of inertia in cross-country life-satisfactionTapas Mishra, Mamata Parhi and Claude Diebolt Post-Print from HAL Abstract: This paper is broadly concerned with understanding the role of evolutionary efficiency in happiness realization. Towards this end, we examine the (distributive and) non-linear effects of inertia in a cross-country setting. We develop a general model of happiness inertia and study its properties in a stochastic and non-linear environment. This allows us to map out the net effects of evolutionary efficiency through 'adaptive capability' in an environment where stochastic shocks are both mean reverting and non mean-reverting. Our empirical estimation for a set of developed economies demonstrate that the adjustment of realized happiness to a stochastic non-mean reverting shock is non-linear implying the involvement of complex socio-economic processes in happiness perception. Moreover, we also find that the adjustment of current level of happiness to the past follows a heterogeneous distribution once again indicating that the extent of temporal (inter-)dependence is non-unique across the happiness distribution. Our results hold interesting policy implications. Keywords: Evolutionary efficiency; Cross-country life-satisfaction; Inertia; Non-linearity (search for similar items in EconPapers) Published in Economies et Sociétés. Série AF, Histoire Economique Quantitative, 2014, 49, pp.1335-1356 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01741858 Access Statistics for this paper More papers in Post-Print from HAL |
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