Does economic prosperity bring about a happier society? Empirical remarks on the Easterlin Paradox debate sans Happiness Adaptation

Beja Jr., Edsel (2013): Does economic prosperity bring about a happier society? Empirical remarks on the Easterlin Paradox debate sans Happiness Adaptation.

Abstract

Analysis confirms a statistically significant positive but very small long run relationship between economic growth and happiness. Even so, the estimated long run relationship implies little, if any, economic significance. This paper argues that a statistically significant relationship is a refutation of the Easterlin Paradox if and only if its magnitude indicates economic significance. Indeed, an interpretation that puts emphasis on economic significance leads to a confirmation of the Easterlin Paradox.

• Item Type: MPRA Paper
• Language: English
• Keywords: Easterlin Paradox; economic growth; happiness; time
• Subjects: A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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