The Easterlin illusion: economic growth does go with greater happiness
AbstractThe 'Easterlin Paradox' holds that economic growth in nations does not buy greater happiness for the average citizen. This thesis was advanced in the 1970s on the basis of the then available data on happiness in nations. Later data have disproved most of the empirical claims behind the thesis, but Easterlin still maintains that there is no long-term correlation between economic growth and happiness. This last claim was tested using the time trend data available in the World Database of Happiness, which involve 1531 data points in 67 nations that yield 199 time-series ranging from 10 to more than 40 years. The analysis reveals a positive correlation between GDP growth and rise of in happiness in nations. Both GDP and happiness have gone up in most nations, and average happiness has risen more in nations where the economy has grown the most; r =+0.21 p
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43983.
Date of creation: 23 Jan 2013
Date of revision:
happiness; economic growth; Easterlin Paradox; trend analysis;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- Z10 - Other Special Topics - - Cultural Economics - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
- A10 - General Economics and Teaching - - General Economics - - - General
- H00 - Public Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-03 (All new papers)
- NEP-FDG-2013-02-03 (Financial Development & Growth)
- NEP-HAP-2013-02-03 (Economics of Happiness)
- NEP-HPE-2013-02-03 (History & Philosophy of Economics)
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