[...]Imagine you are a president or prime minister. It is imperative to keep your people happy because you hope to be re-elected in order to make your citizens happier and to run your country efficiently. You also know that people care about personal factors like health, income, education and development in general. You have an intuitive idea that they care also about external factors like inflation and security. But how do you work out the relative importance of all these things that constitute well-being which in turn translate to happiness? We are talking about happiness economics.
Historically, economists have said that well-being is a simple function of income. By their argument, happiness ought to be the preserve of the super rich— the Bill Gates and the Roman Abramovichs of this world. But the million dollar question is: Are the rich always happy?[...]
Rooted in this postulation is the thinking of happiness economics, which is the study of a country’s well-being by combining economists’ and psychologists’ techniques. The goal of happiness economics is to determine where people derive their well-being. Happiness economists hope to change the way governments view well-being and how to most effectively govern and allocate resources given this paradox.
Click here for the full article.