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Income growth, redistribution, and subjective well-being in Taiwan -- a simulation study


  • Hung-Lin Tao
  • Shih-Yung Chiu


This study simulates different income growth and income distribution scenarios in Taiwan in 2001, and examines how social happiness and people's happiness at different income levels change. Without taking downward comparison into consideration, the simulation supports income redistribution in favour of the poor. When the downward comparison is taken into consideration, the simulation does not support any kind of income redistribution. The present study investigates the relationship between income inequality and subjective well-being, and shows that a change in the Gini index can be interpreted in terms of a shift in revealed subjective well-being.

Suggested Citation

  • Hung-Lin Tao & Shih-Yung Chiu, 2013. "Income growth, redistribution, and subjective well-being in Taiwan -- a simulation study," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 775-791, February.
  • Handle: RePEc:taf:applec:45:y:2013:i:6:p:775-791
    DOI: 10.1080/00036846.2011.613768

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