Utility theory is based, among others, on the premise that more is better and therefore
that increases in income are desirable from an individual’s perspective. In technical
terms, a higher income allows the insatiable consumer to reach a higher indifference
curve. Despite this assumption, the relation between income and happiness or wellbeing1
has been one of the most discussed and debated topics in the literature on subjective
well-being since the early 1970s