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What Buys Happiness? Analyzing Trends in Subjective Well-Being in 15 European Countries, 1973-2002

Author

Listed:
  • Bjørnskov, Christian

    (Aarhus School of Business)

  • Datta Gupta, Nabanita

    (Aarhus University)

  • Pedersen, Peder J.

    (Aarhus University)

Abstract

Trends in life satisfaction are examined across 15 European countries employing a modified version of Kendall's Tau. Analyses show that GDP growth relative to growth in the preceding period is a significant determinant of the trends; the same holds for the growth in life expectancy while the contemporaneous growth in the current account balance exerts a positive influence. Relative unemployment growth becomes significant when interacted with a measure of the long-run political ideology of the median voter. The effects of relative GDP growth vary with the political ideology variable.

Suggested Citation

  • Bjørnskov, Christian & Datta Gupta, Nabanita & Pedersen, Peder J., 2005. "What Buys Happiness? Analyzing Trends in Subjective Well-Being in 15 European Countries, 1973-2002," IZA Discussion Papers 1716, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1716
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    References listed on IDEAS

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    Cited by:

    1. Pedersen, Peder J. & Schmidt, Torben Dall, 2011. "Happiness in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 480-489.

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    More about this item

    Keywords

    subjective well-being; economic factors;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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