Investigating Economic Factors Affecting Happiness in Selected Countries: Panel Threshold Regression Approach

Monsef, Abdolali; Moalemi, Mozhgan; Biyabani, Jahangir; Nejati, Mehdi; Taherizadeh, Javad

doi:10.30473/egdr.2019.43005.4976

Document Type : ORIGINAL ARTICLE

Authors

¹ Associate Professor of Economics, Payame Noor University, Tehran, Iran

² Assistant Professor of Economics, Payame Noor University, Tehran, Iran

³ Assistant Professor of Economics, Shahid Bahonar University, Kerman, Iran

⁴ Ph.D. Student, Payame Noor University, Tehran, Iran

https://doi.org/10.30473/egdr.2019.43005.4976

Abstract

If happiness is a good feature of society and development is considered as a gradual movement towards good society, happiness can be one of the goals of developmental policies. In the field of happiness economics, the focus of studies is on analyzing the impact of various economic factors on happiness. But so far, no study has investigated the effect of economic variables on happiness with the panel threshold regression models. In the present study, the effect of eight variables on happiness using panel data for 100 countries in the period 2005 to 2016 in three scenarios was investigated using panel threshold regression method. The results of the research show that the happiness relationship with per capita income, health, consumption, government expenditures and economic freedom is positive and there is a negative relationship between happiness and income inequality, inflation and unemployment. In each scenario, only a threshold value was detected. Consumption expenditures and economic freedom have a positive effect on happiness, and the size of this effect increases with increasing per capita income (threshold variable). Per capita income has a positive effect on happiness, but with increasing income inequality (threshold variable), the effect of per capita income will decrease. It seems, therefore, that the formulation of appropriate policies to reduce income inequality can lead to more social happiness for the society, which will result in increased productivity and economic growth.

Keywords

20.1001.1.22285954.1398.9.36.1.5

Main Subjects

Dynamic Panel Data

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Economic Growth and Development Research

Investigating Economic Factors Affecting Happiness in Selected Countries: Panel Threshold Regression Approach

References

References

Volume 9, Issue 36 - Serial Number 36
September 2019
Pages 15-34

Investigating Economic Factors Affecting Happiness in Selected Countries: Panel Threshold Regression Approach

References

References

Volume 9, Issue 36 - Serial Number 36September 2019Pages 15-34

Volume 9, Issue 36 - Serial Number 36
September 2019
Pages 15-34