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Economics and HappinessFraming the Analysis$
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Luigino Bruni and Pier Luigi Porta

Print publication date: 2005

Print ISBN-13: 9780199286287

Published to Oxford Scholarship Online: February 2006

DOI: 10.1093/0199286280.001.0001

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Does Absolute Income Matter?

Does Absolute Income Matter?

(p.65) 2 Does Absolute Income Matter?
Economics and Happiness

Robert H. Frank

Oxford University Press

The answer to the question in the title is that abosolute income does matter. An important finding in the literature on well-being is that beyond a fairly low income threshold, measured well-being changes little as the incomes of population members rise over time. It is argued that despite the latter finding, one should be reluctant to conclude that absolute income has no bearing on human well-being.

Keywords:   well-being, welfare, income

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