Impact of Macroeconomic Variables on Happiness: Cross-Country Study with Extreme-Bound Analysis Approach
Subject Areas : Labor and Demographic Economics
Keywords: panel data, Health care, Happiness, Economic Environment, Extreme-Bound Analysis,
Abstract :
The purpose of this paper is evaluating the effect of environmental and voluntary variables on level of happiness in developed and developing countries. In this paper, the effect of environmental and voluntary variables on happiness was estimated using extreme-bound analysis (EBA) and group panel data technique in 1990-99 and 2000-2008 periods. The level of happiness in developed countries (in average 7.1) is more than developing countries (in average 5.9). Environmental factors (high income per capita and low inflation and unemployment) and health care (such as high life expectancy as resultant of environmental and voluntary factors) are key factors which can explain the difference of happiness in developed and developing countries.
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