It turns out that money can buy happiness, but you get more of a bang for your buck if you spend your money when you're young -- before your health deteriorates and you become less able to enjoy that night on the town or that barefoot cruise through the Caribbean. These are the findings of a new working paper by Amy Finkelstein (MIT), Erzo Luttmer (Harvard) and Matthew Notowidigdo (MIT). Finally, some evidence in favor of spending our money now, rather than investing it until retirement.
Read the article in Slate.
Download the paper.