ASSIGNMENT 3

EL1502_EAW221
Pair 10: Phan Thanh Long
Tran Le Hai Trieu
Write a summary (about 300-400 words).

In the article “Explaining Happiness” at Department of Economics, University of

Southern California, Los Angeles (2003), Richard A. Easterlin discusses the elements of
happiness through social surveys. The author analyzes and gives two main argument
hypotheses included “Is there a setpoint of happiness?” and “Is more better?” The
author opens with psychological theory, the important issue here is not whether there is
any adaptation to life but whether the adaptation is complete. There have been clear
psychological studies, for experiences like loud noise and plastic surgery, pleasure
adaptation is often less complete and that these experiences have a lasting effect on
happiness of human. Additionally, the survey evidence presented below suggests that
individuals do not fully adapt to changes in health or marital circumstances. To switch to
economic theory, does the evidence related to this support that income is associated
with happiness? Although in the life cycle the income leveled off then happiness did not
change, it contradicted the theory that happiness comes with income. Education is
representative of income, the higher the level of education, the happier the happiness.
Aspirations and adaptation, Adaptation level depends on life circumstances, if the actual
situation changes in a good direction, the accomplishment of the goal of happiness will
increase and vice versa. These are problems happening in the marriage and health
realm. 10 consumer goods on the "good life" list such as car houses or overseas travel,
at each stage of their life cycle they will be able to buy these items in value from small to
large. Aspirations will arise when the old ones are fulfilled, an increase in the number of
goods owned more by the more educated, the better educated are the more likely to
fulfill the aspirations and the happier they will be than the educated less than. In the field
of family, the desire for a happy marriage is common, older people or unmarried people
45 years of age or older all yearn for a happy marriage. The author believes that
aspirations for good health still take place when actual health deteriorates, although
there are no specific data. Explaining Happiness, economic theory holds that happiness
is based on performance, the amount of time allocation is not suitable, because when
given time to use they do not realize the expectation can change with hedonistic
comparison and adaptation. Living conditions also affect well-being. Economic
conditions, family, and health are a source of happiness. Economic policy proposals to
improve well-being. Greater attention and seriousness are needed to come up with
measures that contribute to wiser hobbies.