Well-Being Rebounds 1 Year After a Rise in Gasoline Prices

July 31, 2013 HBR's The Daily Stat Why don't today's gasoline prices bother Americans as much as they did when prices were just as high, but on the ascent, in 2008? Research by Casey Boyd-Swan and Chris M. Herbst of Arizona State University shows that subjective well-being deteriorates when gasoline prices rise, but almost fully rebounds 1 year later and changes very little in each additional year subsequent to an increase. The effect of rising gasoline prices on well-being, which applies even to nondrivers, may stem from people's tendency to interpret movements in gasoline prices as indicative of macroeconomic conditions, the researchers suggest. SOURCE: Pain at the pump: Gasoline prices and subjective well-being