Do Large Governments Decrease Happiness?
Until now there was little evidence of the influence of large governments on happiness and when it existed, it was positive. We show that structural government consumption and other measures of long-term government imbalances significantly decrease happiness and life satisfaction in European countries. In some cases there is evidence of an inverted U-shaped relationship between the Government burden and happiness, for which the negative relationship begin just before the median. This evidence may lead European politicians to reject the idea that bigger Governments lead to higher people satisfaction and to win elections. This result is consistent with people valuing (negatively) expectations for future tax increases, macroeconomic imbalances, and austerity.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hessami, Zohal, 2010.
"The Size and Composition of Government Spending in Europe and Its Impact on Well-Being,"
21195, University Library of Munich, Germany.
- Zohal Hessami, 2010. "The Size and Composition of Government Spending in Europe and Its Impact on Well-Being," Kyklos, Wiley Blackwell, vol. 63(3), pages 346-382, 08.
- Rafael Di Tella & Robert MacCulloch, 2005.
"Gross National Happiness as an Answer to the Easterlin Paradox?,"
- Di Tella, Rafael & MacCulloch, Robert, 2008. "Gross national happiness as an answer to the Easterlin Paradox?," Journal of Development Economics, Elsevier, vol. 86(1), pages 22-42, April.
- William Hauk & Romain Wacziarg, 2009.
"A Monte Carlo study of growth regressions,"
Journal of Economic Growth,
Springer, vol. 14(2), pages 103-147, June.
- Hayo, Bernd & Seifert, Wolfgang, 2003.
"Subjective economic well-being in Eastern Europe,"
Journal of Economic Psychology,
Elsevier, vol. 24(3), pages 329-348, June.
- Bernd Hayo & Wolfgang Seifert, 2002. "Subjective Economic Well-Being in Eastern Europe," Development and Comp Systems 0203001, EconWPA.
- Hayo, Bernd & Seifert, Wolfgang, 2002. "Subjective economic well-being in Eastern Europe," IBES Diskussionsbeiträge 120, University of Duisburg-Essen, Institute of Business and Economic Studie (IBES).
- Pouwels, Babette & Siegers, Jacques & Vlasblom, Jan Dirk, 2008. "Income, working hours, and happiness," Economics Letters, Elsevier, vol. 99(1), pages 72-74, April.
- Eiji Yamamura, 2012.
"The Effects of Information Asymmetry and Government Size on Happiness: A Case Study from Japan,"
The IUP Journal of Governance and Public Policy,
IUP Publications, vol. 0(1), pages 7-20, March.
- Yamamura, Eiji, 2010. "The effects of information asymmetry and government size on happiness: A case study from Japan," MPRA Paper 27182, University Library of Munich, Germany.
- M. Ali Choudhary & Paul Levine & Peter McAdam & Peter Welz, 2012. "The happiness puzzle: analytical aspects of the Easterlin paradox," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 27-42, January.
- George MacKerron, 2012. "Happiness Economics From 35 000 Feet," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 705-735, 09.
- Stefano Bartolini & Ennio Bilancini, 2010. "If not only GDP, what else? Using relational goods to predict the trends of subjective well-being," International Review of Economics, Springer, vol. 57(2), pages 199-213, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:54418. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.