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Oswald, Andrew J.; Powdthavee, Nattavudh (2008)
Publisher: Elsevier
Languages: English
Types: Article
Subjects: HC
This paper is an empirical study of partial hedonic adaptation. It provides longitudinal evidence that people who become disabled go on to exhibit considerable recovery in mental well-being. In fixed-effects equations we estimate the degree of hedonic adaptation at — depending on the severity of the disability — approximately 30% to 50%. Our calculations should be viewed as illustrative; more research, on other data sets, is needed. Nevertheless, we discuss potential implications of our results for economists and the courts.\ud \ud
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