Happiness: a revolution in economics (original) (raw)

What Do We Know About Happiness

2001

Summary One of the goals of developmental policy is to create greater happiness for a greater number. Realization of that ambition requires understanding of happiness. The following questions must be answered: 1) What is happiness precisely? 2) Can happiness be measured? 3) How happy are people presently? 4) What causes us to be happy or unhappy? 5) Can happiness be raised lastingly? This paper takes stock of the available answers and links these to the Bhutanese ambition of promoting'Gross' National ...

Management & Development of Happiness - A Priority in Socio-Economic Development

SSRN Electronic Journal, 2005

If bigger objects go into a jar, then there will be space to fill it with smaller objects in sequence, depending upon the size of subsequent objects. Like a Magical Demo, at any point of time the jar is not full, till the smallest fills it to a saturated level. If the order of the objects are reversed, then it ends in filling it at the starting point, without any space to fill further. Happiness in life is a Logical Info similar to this Demo. If one fills the bigger priority needs in the life, then there will be enough capacity to fill relatively smaller needs in sequence, to attain progressive happiness. It ends in frustration, if the order of priority is changed. Even though some feel that money can buy happiness, the majority opinion is that money cannot bring happiness, and it can induct problems as well. In the Economic scenario, GDP is used as an index to measure the progress. But from the point of view of peoples' happiness, which is an essential socioEconomic Development need, GDP is vague relation builder. Governments and Private corporate sectors in different developed nations do have attempted to induct more happiness to their employees, by ensuring more money generation opportunities, lower working hours, increased fringe benefits etc… But, frustration and depression seem to be increasing in proportion to the Tangible wealth gain. Also the priority needs of households change over a period of time, and people feel happy by comparing their possessions relative to others around. It is because, the Tangible (TEE) wealth generation is dribbled (filtered) by Intangible (EYE) feelings of Happiness and satisfaction.

The relationship between economic growth and happiness

Pressacademia, 2021

Purpose-The purpose of this study is to analyze the relationship between economic growth (or economic performance) and happiness (life satisfaction, well-being). Happiness economics is a very contemporary research field, attracting economists, sociologists, psychologists and other scientists to investigate it, yet there is many rooms for exploration. Money is not everything, so how much does it matter precisely? This debate has divided the researchers in two parties: the ones who are arguing that economic growth and happiness go hand in hand and the ones who say that there is no relationship between these two concepts and because of this fact the constant aspiration for economic growth lost its meaning, and does more harm than benefit. Methodology-We started by analyzing the accurate and detailed definition of the GDP and include information about it in order to better understand its function and applicability. In the following, we have analyzed the concept of happiness, the way it can be defined and measured. Then, we have analyzed the given economic theories which relate to these two concepts and describe a relationship between them. We analyzed four countries (Denmark, Costa Rica, Romania, and India) mostly based on their economic and well-being situation, and the available indicators which have an effect on well-being. We examined these countries because two of them had a very high level of wellbeing, one had a medium level and one had a low level of well-being. There were examples where the money had a good effect on happiness and also where not. In Denmark and Costa Rica money was not the only (or any reason) because for the high level of well-being, other factors, not really related to money, were high as well. In Romania, the GDP and happiness have increased at the same time. In India, the increasing GDP has brought in fact diminishing happiness. Findings-In our paper, we have found out that there are various theories built upon this question, as controversial studies and opinions. Some researchers say that GDP has no effect on the level of well-being. On the contrary, more recent studies generally prove the other side, that GDP and happiness go hand in hand. There was one common factor in almost every research: money has a diminishing marginal utility on happiness, for a very poor country additional income does bring a high level of happiness, but for a very rich country it is almost invisible. It needs to be mentioned that growth and development do not concern just quantitative increases in production, consumption, income, or any other measures. They generally also involve qualitative changes, like education, healthcare, or political freedom. These factors certainly develop the level of well-being in a country, and for their development, there is a need for economic growth. On the other hand, economic growth does not guarantee the development of these factors, as we can see in the example of India. In my opinion, the best approach is not to focus on economic growth anymore, but on the question, how could we use this growth in GDP in order to improve our conditions and make people happier? Conclusion-Meanwhile measuring happiness is much more complex, although we have many measures trying to assess it: Gross National Wellbeing, Happiness Index, Genuine Wealth Index Happy Planet Index, OECD Better Life Index, Human Development Index, Well-being index, Social Development Index, and many others, but they are not widely accepted because of their subjectivity and non-accuracy. Even more, it is much more difficult to improve these measures in a country because they depend on many factors, some of which are not even entirely clarified than to improve GDP, which relies on objective, strictly numerical measures. The starting point of nearly every happiness and welfare measure is self-reported happiness, which given its nature is very subjective. This fact again provokes skepticism and antipathy in many people's minds and tends to state that these measures are not relevant and should not be based upon. Economic growth is one indicator that is widely used and analyzed, but happiness indicators are not so frequently discussed. On the other hand, we think there is a need to do it, that is why there is an emerging interest among researchers towards it.

Economics and Happiness – Key Insights and Latest Findings

Ekonomska Misao i Praksa, 2022

The paper gives an overview of the most important principles and the most recent research in the field of the economics of happiness. Its aim is to improve the basis for public discussion and informed decision-making in policy creation and implementation. The concept of happiness attracted economists early on and their attitude towards it has changed with time. Modern happiness data represent a new, scientifically validated way of measuring progress, although there is still room for improvement. The research shows that key determinants of happiness include physical and mental health, social relations, income and institutions. Happiness in itself leads to a wide range of benefits for individuals and society. This kind of research can help policy creators decide on the role, nature, target recipients and priorities for relevant policies. All this demonstrates that happiness economics has a potential for addressing current needs and future tasks to build a happier society.

In pursuit of happiness research: Is it reliable? What does it imply for policy?

2007

Abstract: Happiness research studies the correlates of subjective well-being, generally through survey methods. A number of psychologists and social scientists have drawn upon this work recently to argue that the American model of relatively limited government and a dynamic market economy corrodes happiness, whereas Western European and Scandinavian-style social democracies promote it.

Insights on Development from the Economics of Happiness

The World Bank Research Observer, 2005

The literature on the economics of happiness in developed economies finds discrepancies between reported measures of well-being and income measures. One is the so-called Easterlin paradox: that average happiness levels do not increase as countries grow wealthier. This article explores how that paradox-and survey research on reported well-being in general-can provide insights into the gaps between standard measures of economic development and individual assessments of welfare. Analysis of research on reported well-being in Latin America and Russia finds notable discrepancies between respondents' assessments of their own well-being and income-or expenditure-based measures. Accepting a wide margin for error in both types of measures, the article posits that taking such discrepancies into account may improve the understanding of development outcomes by providing a broader view on well-being than do income-or expenditure-based measures alone. It suggests particular areas where research on reported well-being has the most potential to contribute. Yet the article also notes that some interpretations of happiness research-psychologists' set point theory, in particular-may be quite limited in their application to development questions and cautions against the direct translation of results of happiness surveys into policy recommendations. The study of happiness or subjective well-being (terms that are used interchangeably) is fairly new to economists, although psychologists have been studying it for years. Some of the earliest economists, such as Jeremy Bentham, were concerned with the pursuit of individual happiness. As the field became more rigorous and quantitative, however, much narrower definitions of individual welfare, or utility, became the norm. In addition, economists have traditionally shied away from the use of survey data because of justifiable concerns that answers to surveys of individual preferences-and reported well-being-are subject to factors such as the respondents' mood at the time of the survey and minor changes in the phrasing of survey questions, which can produce large biases in results (Bertrand and Mullainaithan

ECONOMIC DEVELOPMENT AND HUMAN HAPPINESS

Human happiness is based on the overall development of an economy, which is also supported by world happiness index which includes gross domestic product per capital, life expectancy and social support and Freedom. Happiness is considered a proper measure of social progress and goal of public policy. The concept of happiness and well-being are very likely to help guide progress towards sustainable development. If we talk about economic development, it includes overall development of an economy i. e. growth in National income, health facility, education facility and government policy etc. India ranks 117 out of 158 nations on global happiness index. The other countries in top five are Switzerland, Iceland, Denmark, Norway and Canada. By Press trust of India, United published on April 24, 2015. It is a big thing to study, that why there is a big difference among countries. Many LDCs (Lower developed countries) face the problems to decrease the gap among different income groups. The cause of this problem is lack of resources which fulfils the basic need. The study focuses on all facts which affect Indian Economical development, and human happiness. INTRODUCTION If we talk what makes people happy in life? This is a crucial question that has the potential to shake up economic development of an economy. If a person enjoys all the facilities provided by the government and he says that he is happy in his life the thing is that human happiness depends upon the gross domestic product of an economy, life expectancy, social support and freedom. It also considers a proper measure of social pro gress and goal of public policy, and all conditions that make a person happy. Economic development refers to the process whereby the people of the country or region come to utilize the resources available to bring about a sustained increase in per capita production of goods and services; it also includes improvement in health facilities, education facilities, and also increases in National income. There are two terms one is economic growth and the second economic development where Economic growth is a quantitative concept which includes increase in national income, per capita income, while economic development is a qualitative concept which includes o ver all development of people of a country. If we talk about the relation blow economic development and human happiness, we can say that human happiness is totally based on economic development because the terms of economic development and human happiness are same.

Can I Sustain My Happiness? A Review, Critique and Research Agenda for Economics of Happiness

Sustainability, 2019

Human beings want to live in a state of happiness and prosperity, but happiness is important not just for the well-being of individuals but for the well-being of society. To ensure the maximization of happiness, it is necessary to consider more than just money, and rather include the right understanding of happiness at the individual level, the family level, the society level, and the environmental (nature) level. This paper contributes to the existing body of knowledge by consolidating the findings of the literature; grouping those into major themes and sub-themes; describing the mechanisms based on the empirical papers by highlighting the independent, dependent, control, and moderating variables, to study the causal relationships between variables under study; proposing an agenda for future research; and informing the policymakers about decisions influencing the human happiness level through legislative rules and regulations. Our results suggest prioritizing the conceptualization ...