TY - JOUR
T1 - The association between experiential and material expenditures and subjective well-being
T2 - New evidence from Hungarian survey data
AU - Hajdu, Tamás
AU - Hajdu, Gábor
N1 - Publisher Copyright:
© 2017 Elsevier B.V.
PY - 2017/10
Y1 - 2017/10
N2 - In the last decade, a number of studies using experimental designs have stated that spending money on experiences rather than on material goods tends to make people happier. In this research we used a novel survey approach to examine the relationships between experiential and material expenditures and life satisfaction. In two studies based on cross-sectional survey data from nationally representative samples in Hungary, we estimated linear and non-linear models. We found no significant evidence supporting the greater return received when buying experiences. Even in the non-linear models the difference between the marginal utilities was not statistically significant at any expenditure rate, although the marginal utility of experiential purchases appeared to be linear, whereas the marginal utility of material purchases was rather decreasing. Nevertheless, our results suggest that a reallocation of an average person's expenditures (spending more on experiences and less on material goods) might be associated with a slightly higher well-being.
AB - In the last decade, a number of studies using experimental designs have stated that spending money on experiences rather than on material goods tends to make people happier. In this research we used a novel survey approach to examine the relationships between experiential and material expenditures and life satisfaction. In two studies based on cross-sectional survey data from nationally representative samples in Hungary, we estimated linear and non-linear models. We found no significant evidence supporting the greater return received when buying experiences. Even in the non-linear models the difference between the marginal utilities was not statistically significant at any expenditure rate, although the marginal utility of experiential purchases appeared to be linear, whereas the marginal utility of material purchases was rather decreasing. Nevertheless, our results suggest that a reallocation of an average person's expenditures (spending more on experiences and less on material goods) might be associated with a slightly higher well-being.
KW - Consumption
KW - Experiential purchase
KW - Material purchase
KW - Subjective well-being
KW - Survey data
UR - http://www.scopus.com/inward/record.url?scp=85026262155&partnerID=8YFLogxK
U2 - 10.1016/j.joep.2017.06.009
DO - 10.1016/j.joep.2017.06.009
M3 - Article
AN - SCOPUS:85026262155
SN - 0167-4870
VL - 62
SP - 72
EP - 86
JO - Journal of Economic Psychology
JF - Journal of Economic Psychology
ER -