By far the slowest adjustment pattern is realized in Japan. Overall the difference between the US and Europe seems not to be too large and European labor markets are not as sclerotic as occassionally assumed. The Nash equilibrium is then inefficient. Life-Cycle Happiness in a Discounted Utility Model Stephen Shmanske pp. Abstract A discrete time, discounted utility model with a finite horizon is analyzed.
Happiness is defined as the discounted value of the utility over the remaining lifespan.
Simulations of the model show how happiness grows as the high consumption years get closer, peaks, then declines in later life as the remaining lifespan shortens, even though year by year utility may continue to rise. Simulations also show how the peak year for happiness depends on the subjective, personal discount rate, the rate of wage growth, the effect of a liquidity constraint, the effect of memories, and other parameters in the model. The model also illustrates those aspects of the life cycle characterized by the 'slackers', the 'mid-life crisis' and the golden years'. Estimates of a Hedonic Ageing Equation for Partner Search Samuel Cameron and Alan Collins pp. This paper presents the first attempts by economists to estimate an equation of the demand curve for sexual relationship partner attributes.