Description
Concept Publishing Econometrics of Money and Happiness in India by Lakshmanasamy and T
This book quantitatively analyses the puzzle between money and happiness in India both at individual and aggregate levels and at cross-section, time series and panel levels. The relevance of the Easterlin Paradox, a positive income-happiness relationship at a point in time but a lack association between income and life satisfaction at the aggregate level and over time, and hence economic growth does not improve the human lot, is evaluated. Using data for a long period of 24 years over 1990 to 2014 from the World Values Surveys, the cross-country analysis of the happiness literature is replicated with cross-states analysis, applying robust econometric techniques. The effects of individual absolute income, variously defined relative income measures, NSDP per capita, social comparison, social capital and income inequality on individual, average and aggregate happiness and life satisfaction levels across states and over time are examined. The rigorous econometric results validate the Easterlin Paradox in India in that there is no long-run happiness gain from the income growth and the income effects are not the same for all as the middle-income groups do not gain in happiness from the rising average income. Whatever short-run gain in happiness is erased in the long-run partially by the declining social capital and rising income inequality.