IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Institutional Change and Macroeconomic Performance in OECD Countries: Evidence from Subjective Well-Being Data

Listed author(s):
  • Heinz Welsch


    (University of Oldenburg; ZenTra - Center for Transnational Studies)

  • Jan Kühling

    (University of Oldenburg; ZenTra - Center for Transnational Studies)

This paper explores the relationship between institutional change and macroeconomic performance in 30 member countries of the Organization for Economic Cooperation and Development (OECD). We use data on the subjective well-being (SWB) of more than 91,000 individuals in these countries to assess the well-being effects of national income growth, unemployment and inflation, and we employ the relationships found to construct an index of macroeconomic performance in terms of SWB. Applying the index to the period 1990-2009, we find that macroeconomic performance has improved in OECD overall and in the majority of countries, and that there has been a convergence of performance within the OECD. We then present evidence that OECD countries’ performance, as measured, is positively related to institutional change towards more trade openness and better institutional quality. We argue that both increased openness and improved institutional quality are correlates of economic and political integration and conclude that international integration has enhanced SWB by improving OECD countries’ national macroeconomic performance.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: First version, 2015
Download Restriction: no

Paper provided by ZenTra - Center for Transnational Studies in its series ZenTra Working Papers in Transnational Studies with number 58 / 2015.

in new window

Length: 46 pages
Date of creation: Nov 2015
Date of revision: Dec 2015
Handle: RePEc:zen:wpaper:58
Contact details of provider: Postal:
26111 Oldenburg

Phone: +49 441 798-4117
Fax: +49 441 798-4116
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:zen:wpaper:58. 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: (Finn Marten Koerner)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.