1. Would you be happier if you were richer?

2. Subjective well being across countries over decades

3. why the illusion happens?
Focusing illusion
--definition:
It is a cognitive bias that occurs when people place too much importance on one aspect of an event, causing an error in accurately predicting the utility of a future outcome.
--also when people consider the impact of a single factor on subjective well being.
--example:
how happy are you with your life in general?
how many dates did your have last month?
R=-0.01
reverse the order: r= 0.66

4. Prediction of the percentage of time in bad mood of people in different life circumstances.

5. Income only has a transitory effect on happiness
--reallocate attention eventually
Correlation between income and general subjective well being is higher than the correlation between income and experienced happiness.
--experienced happiness: moment to moment happiness.
Asking feelings from 0 to 3(not happy to pretty happy) every 25 min. r=0.01

6. Why does income have such a weak effect on subjective well being?
Relative income but not absolute income
this can explain:
--why countries’ GDP increase but not people’s subjective well being;
--why the correlation between income and global happiness is higher than income and experienced happiness;
-- why income just has a transient effect on subjective well being.

7. People may adapt to material goods, moreover, people’s aspirations rise together with their income level.
Income increases, but leisure time sacrificed.

8. Thank You !