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Testing the Easterlin Paradox: Results and Policy Implications

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  • Beja, Edsel Jr.

Abstract

The Easterlin Paradox is about the contradiction between an evidence of a short-run relationship between happiness and income growth and no evidence of a long-run relationship between happiness and income growth. The paper argues that there is confirmation of the Easterlin Paradox when the magnitude of the estimated long-run relationship is practically equal to zero notwithstanding its statistical significance. The findings of the paper support the Easterlin Paradox.

Suggested Citation

  • Beja, Edsel Jr., 2018. "Testing the Easterlin Paradox: Results and Policy Implications," MPRA Paper 101075, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101075
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    References listed on IDEAS

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    More about this item

    Keywords

    Easterlin Paradox; cointegration; autoregressive distributed lag;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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