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Wealth and Happiness: Empirical Evidence from Indonesia

Author

Listed:
  • Landiyanto, Erlangga Agustino
  • Ling, Jeffrey
  • Puspitasari, Mega
  • Irianti, Septi Eka

Abstract

Abstract Looking at the economics of happiness is an interesting way to provide a broader concept of wealth. It gives insight on relative utility that does not depend exclusively on income as mediated by individual choices or preferences within monetary budget constraints but also considers non monetary factors. Recent economic studies on happiness or subjective well being, most in developing countries, give us some insight on what contributes to individual’s satisfaction with their lives. Some studies in developed countries also found that within countries, a higher level income contributes to higher levels of reported well being. Unfortunately, economic studies on happiness in developing countries, including Indonesia, are limited because of data limitations. Therefore, this paper analyzes the determinants of subjective well being in Indonesia to assess whether there is positive association between individual wealth and happiness. Using the Indonesia Family Life Survey Data Set, logistic regression analysis is used to identify sources of happiness from both economic and non- economic variables.

Suggested Citation

  • Landiyanto, Erlangga Agustino & Ling, Jeffrey & Puspitasari, Mega & Irianti, Septi Eka, 2011. "Wealth and Happiness: Empirical Evidence from Indonesia," MPRA Paper 50012, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:50012
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    File URL: https://mpra.ub.uni-muenchen.de/50012/1/MPRA_paper_50012.pdf
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    References listed on IDEAS

    as
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    4. Gerdtham, Ulf-G & Johannesson, Magnus, 2001. "The relationship between happiness, health, and socio-economic factors: results based on Swedish microdata," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(6), pages 553-557.
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    6. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June.
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    More about this item

    Keywords

    Happiness. Wealth;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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