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The controversies on the relationship (or `gradient') between GDP and subjective well-being oppose those who claim that the gradient is positive and stable around the world to those who argue that long-run trends of subjective well-being are flat despite economic growth. The possible existence of structural breaks of the gradient within the same country is a challenge to both views. By focusing on the case of Italy, we show that the long-run trends of GDP and of well-being turned from increasing to decreasing, and the gradient exhibits a rise through two structural breaks. Macro and micro analyses explain why the gradient changes, and we find evidence consistent with the `loss aversion' hypothesis. In addition, the gradient changed because the erosion of trust in others, the increase of financial dissatisfaction and worsened health hinder well-being independently from income.
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https://mpra.ub.uni-muenchen.de/94150/. (EVS)
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EVS-Bibliography
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Structural changes in economic growth and well-being. The case of Italy's parabola
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50, 2019
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Bibsonomy
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European Values Study (EVS)
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2019
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EVS
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EVS1981-2008
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EVS_input2019
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EVS_pro
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FDZ_IUP
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ZA4804
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checked
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english
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jak
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kbe
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techreport
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wa
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