The Geography of Economics and Happiness
AbstractThis paper investigates the spatial pattern of the e®ects of eco- nomic conditions on subjective well-being, using a large sample of in- dividuals from 81 countries throughout the world. We ¯nd evidence of substantial spatial heterogeneity and spatial dependence in the cross- country distribution of the e®ects of income and unemployment on happiness. We examine the impact of macroeconomic conditions on country-level sensitivities of subjective well-being to microeconomic conditions. The e®ect of income on well-being is found to be signif- icantly stronger in countries with lower GDP per capita and higher unemployment rate. The e®ect of unemployment on well-being is in- stead signi¯cantly stronger in countries with higher GDP per capita and higher unemployment rate.
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Bibliographic InfoPaper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 140.
Length: 26 pages
Date of creation: Jun 2008
Date of revision: Jun 2008
subjective well-being; economic geography; spatial econometrics;
Find related papers by JEL classification:
- A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-30 (All new papers)
- NEP-GEO-2008-07-30 (Economic Geography)
- NEP-HAP-2008-07-30 (Economics of Happiness)
- NEP-LTV-2008-07-30 (Unemployment, Inequality & Poverty)
- NEP-SOC-2008-07-30 (Social Norms & Social Capital)
- NEP-URE-2008-07-30 (Urban & Real Estate Economics)
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