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Happiness and Public Expenditure: Evidence from a Panel Analysis

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  • Kamal Kasmaoui

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Othmane Bourhaba

Abstract

The present study examines empirically the relationship between Happiness and public spending. We use a panel data from 2006 to 2015 for about 132 countries. We first estimated a Pooled, fixed effect and finally a GMM model to deal with the endogeneity problem. Our main findings suggest, first, that high levels of public expenditure are associated with greater Happiness around the world. Second, as expected, social support, Healthy life expectancy, Freedom to make life choices and confidence in national government contribute significantly to Happiness.

Suggested Citation

  • Kamal Kasmaoui & Othmane Bourhaba, 2017. "Happiness and Public Expenditure: Evidence from a Panel Analysis," Working papers of CATT hal-02625987, HAL.
    • Handle: RePEc:hal:wpcatt:hal-02625987
    Note: View the original document on HAL open archive server: https://hal-univ-pau.archives-ouvertes.fr/hal-02625987
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    1. Christian Bjørnskov & Axel Dreher & Justina Fischer, 2008. "Cross-country determinants of life satisfaction: exploring different determinants across groups in society," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 119-173, January.
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    7. Bodo Knoll & Hans Pitlik, 2014. "Who Benefits from Big Government? A Life Satisfaction Approach. WWWforEurope Policy Paper No. 14," WIFO Studies, WIFO, number 47495, April.
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    1. Ariel Herbert Fambeu & Georges Dieudonné Mbondo & Patricia Tchawa Yomi, 2022. "Bigger or better? The effect of public spending on happiness in Africa," African Development Review, African Development Bank, vol. 34(4), pages 487-499, December.

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    More about this item

    Keywords

    Happiness; Public choice; Government spending; GMM;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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