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Money, Consumption and Happiness

  • Dieter BögenholdEmail author
  • Farah Naz
Chapter

Abstract

Consumption is an important activity in any discussion about money and happiness. It is important to realize that income does not translate directly into happiness; rather it is mediated through different intervening variables. Thus, a multilevel conceptual framework is required to enhance understanding in this domain. Beyond this debate, there is also a growing recognition that consumption is a key variable that intervenes between money and happiness. Rich people often indulge in status consumption that produces negative externalities. In the same vein, preference drifts mostly occur among rich people rather than low-income groups, who spend most of their income on their basic needs. The power of social comparison overrides the power of an increase in income for rich people. Thus, intriguingly, the relationship between income, consumption and happiness has multiple social, economic and psychological denominators.

Keywords

Consumption Income Happiness Wellbeing 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Department of SociologyUniversity of KlagenfurtKlagenfurt, CarinthiaAustria
  2. 2.Department of Sociology and CriminologySargodha UniversitySargodhaPakistan

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