Testing the Easterlin Paradox: Results and Policy Implications

Beja, Edsel Jr. (2018): Testing the Easterlin Paradox: Results and Policy Implications.

Abstract

The Easterlin Paradox is about the contradiction between an evidence of a short-run relationship between happiness and income growth and no evidence of a long-run relationship between happiness and income growth. The paper argues that there is confirmation of the Easterlin Paradox when the magnitude of the estimated long-run relationship is practically equal to zero notwithstanding its statistical significance. The findings of the paper support the Easterlin Paradox.

• Item Type: MPRA Paper
• Language: English
• Keywords: Easterlin Paradox; cointegration; autoregressive distributed lag
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being

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