Integrating Happiness Economics and Subjective Well-Being in Policy Evaluation – Evidence From Qatarâ€

This chapter explores the field of Happiness Economics, an interdisciplinary approach that integrates economic and psychological insights to better understand human well-being. Unlike traditional economic models that emphasise income and consumption, Happiness Economics incorporates subjective well-being (SWB) indicators such as life satisfaction, emotional experiences, and perceived purpose. The chapter traces the historical evolution of happiness in economic thought, from classical philosophers to modern behavioural economics, and highlights key methodological developments, such as the use of large-scale surveys and econometric models (e.g., ordered probit and logit). It examines how happiness data can complement conventional indicators to provide richer insights into issues like inequality, globalisation, unemployment, and public health. The analysis includes empirical evidence from Qatar, where economic indicators such as GDP per capita and unemployment rate are assessed alongside subjective well-being metrics. Despite methodological challenges, including potential biases in self-reported data, the chapter argues that Happiness Economics offers a valuable framework for evaluating policy outcomes and improving quality of life. By emphasizing expressed preferences and subjective perceptions, this approach helps bridge the gap between economic policy and human experience.