Happiness in the European Union: A Panel Regression Model and TOPSIS Analysis

In this study data from EU member states from 2011 to 2022 is used to evaluate the impact of six factors on happiness within the EU. Using data from 2022 the researchers compare and rank nations using a regression model and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. Key factors that have a significant impact on happiness across EU countries include social support healthy life expectancy and the freedom to make life choices. The results of the current study provide policymakers with pertinent information. Remarkably the regression coefficient for Generosity was not statistically significant and the only variable that negatively affected happiness was perceptions of corruption. The factors taken together explained 77% of the variation in happiness. Finland despite being a leader in happiness overall was only ranked eighth by the TOPSIS analysis which showed that nations like Sweden Denmark and the Netherlands had the highest scores and ranked favorably on the Happiness Index. These findings provide a basis for evidence-based policies meant to foster equitable growth and sustainable well-being throughout the EU by highlighting the significance of resolving regional disparities and putting transparent governance into place to reduce corruption.