Gross National Happiness

Total Page:16

File Type:pdf, Size:1020Kb

Gross National Happiness Gross National Happiness The Himalayan nation of Bhutan has been a leader in development decide to put something as ephemeral as devising and promoting an alternative development happiness fi rst? paradigm called gross national happiness. The king’s Th e king’s statement signaled that Bhutan’s develop- statement “Gross National Happiness is more impor- ment process would grow out of its own cultural context, tant than Gross National Product” arose from including its ancient Vajrayana Buddhist traditions, rather Buddhism, which recognizes the transitory nature of than being imposed by foreign experts. Development material satisfactions. This view, together with the fi nd- would need to support the Buddhist quest for enlighten- ings of positive psychology, is encouraging Western ment for the good of all sentient beings—a quest associ- nations to measure the full spectrum of human ated with the development of enduring equanimity, well-being. compassion, and spiritual inspiration at the individual and collective levels. n 1972, the fourth king of the Himalayan nation of I Bhutan, King Jigme Singye Wangchuk, proclaimed, Buddhist Roots “Gross National Happiness is more important than Gross National Product”—a statement that challenged In articulating gross national happiness (GNH), the king prevailing economic development theories around the drew on Bhutan’s deep well of compassion for and non- world. violence toward all sentient beings, based in its 1,200- Th e proclamation was especially bold because tiny, year history of Buddhism. His statement connected with mountainous Bhutan, wedged between India and China, previous policies, also grounded in Buddhism. A 1675 was—at that time—one of the world’s least-developed Buddhist equivalent of a social contract declared that and most-isolated nations. Even today, it is among the happiness of all sentient beings and the teachings of the least-developed countries in the world, according to the Buddha are mutually dependent. In 1729, a Bhutanese Offi ce of the High Representative for Least Developed legal code required that laws promote happiness of sen- Countries, Landlocked Developing Countries and Small tient beings. Island Developing States (OHRLLS) at the United Among the tenets of Buddhism are the ideas that all Nations (UN DESA and OHRLLS 2011). Extreme beings want to be happy, and that, while life is full of suf- topography and self-imposed isolationism kept Bhutan fering, the cessation of suff ering through guidance, prac- cut off from most visitors from beyond the Himalayan tice, and attention is possible, leading to the achievement region until 1974, when foreign dignitaries arrived for of enlightenment. Interdependent co-arising—the con- the king’s coronation. In the 1970s, more than 90 percent cept that there are no independently existing causes, of Bhutan’s populace lived in rural areas. Fewer than identities, or egos—creates the impetus to protect life. 1,200 kilometers of roads facilitated movement about the Th e doctrine of karma teaches that one always reaps the country. Villagers eked out subsistence livelihoods on the benefi ts or harms of one’s actions, which provides further steep hillsides, without electricity, running water, or incentive to treat other living beings compassionately and mechanized means of tilling their fi elds. How could a considerately. Within Vajrayana Buddhism, the fi gure of nation that sorely needed infrastructure and economic the bodhisattva (one who attains enlightenment but 180 www.berkshirepublishing.com © 2012 Berkshire Publishing grouP, all rights reserved. GROSS NATIONAL HAPPINESSLS • 181 remains on the earthly plane to assist other sentient natural disasters, chemical leaks, epidemics, or drug beings in their eff orts toward enlightenment) is revered, addiction. Th e GDP measures also ignore the externali- indicating a cultural imperative to generate boundless ties of industrial production, such as pollution, environ- compassion. mental degradation, and toxic waste, which have negative health and ecological eff ects over large areas. A more accurate accounting of the costs of production would GNH and Gross Domestic Product subtract these social costs and make GDP more meaningful. During the 1980s and 1990s, the king further elaborated Table 1, on the next page, summarizes the primary on the concept of GNH as Bhutan’s guiding development concepts of GNH compared to established development policy. He criticized standard socioeconomic develop- measurement approaches. ment indicators for measuring means rather than ends, Because GDP measures production, consumption and indicated that happiness would be the goal of devel- must continually increase in order to raise production opment in Bhutan. Th e king proclaimed that Bhutanese rates. Th rough increasing production, a nation may rap- development would recognize the social, spiritual, and idly deplete its natural resources, which registers as an emotional needs, as well as the material needs, of the increase in GDP even as it drives down natural capital, individual, instead of being based solely on economic the stock of resources available for the future. GDP thus measures and consumption. He recast “development” to can have an inverse relationship to GNH: as circum- mean the enlightenment of the individual through the stances get worse, the economic standing of a nation creation a harmonious psychological, social, and eco- rises. In contrast, GNH is inherently predisposed toward nomic environment that could lead to the blossoming of sustainability because it recognizes that material devel- happiness. Measuring the country’s consumption of opment is not the only valid measure of human progress, goods and services would not refl ect the paramount goal and it understands that declining natural resources are a of spiritual development. drain rather than a boon to GDP. Th e king and his advisors further defi ned GNH as standing on four “pillars”: sustainable and equitable socioeconomic development, environmental conserva- GNH and Global Policy tion, preservation and promotion of culture, and good governance, which guided development eff orts in the late With the introduction of GNH onto the global stage in 1990s and early 2000s. Th ese four pillars make it clear 1998 at the Millennium Meeting for Asia and the Pacifi c that socioeconomic development represents only one- in Seoul, South Korea, the concept began to gain inter- quarter of the necessary conditions for the promotion of national currency. Gross National Happiness , a book GNH. Economic development, rather than being a cen- of discussion papers, was published in Bhutan on the tral metric for measuring progress, is part of a constella- occasion of the king’s Silver Jubilee in 1999. In 2001, the tion of metrics. Centre for Bhutan Studies co-hosted a seminar entitled In articulating this vision, the king and his advisors “GNH—As Challenged by the Concept of Decent pointed out a well-recognized diffi culty with standard Society” in the Netherlands, with which Bhutan has measures of a country’s development or success, such as a close aid relationship. In 2002, the South Asian gross domestic product (GDP). Th is measure refl ects the Association for Regional Cooperation (SAARC) planning economic value of all production of goods and services in and economic ministers embraced GNH as a strategy for a country during a given period and is typically seen as a poverty reduction in southern Asia. proxy for standard of living, such that greater consump- A series of conferences, begun in 2004 in Bhutan, has tion of goods and services implies a higher material stan- helped spread awareness of GNH, while supporting the dard of living. As the Bhutanese have noted, however, Bhutanese government in creating tools to operationalize after certain basic material needs are met, greater con- and eventually measure GNH. International experts in sumption of material goods does not guarantee greater economics, psychology, policy, and other aspects of happiness. Further, as ecological economists point out, development were invited to deliberate on how Bhutan the correlation between GDP and standard of living might use its development paradigm to guide interna- breaks down when a country increases its spending to tional engagement and material improvements in the combat social problems (see, for example, Daly and Cobb lives of local people. Th e conferences also introduced aca- 1994; Norgaard 1994; Planning Commission, Royal demics and policy experts from around the world to an Government of Bhutan 1999). In that scenario, GDP alternative development paradigm, which many have continues to rise, even as greater shares of resources are worked to implement at various scales in their home used to ameliorate drains on society, such as crime, countries. Conferences on GNH have since been held in www.berkshirepublishing.com © 2012 Berkshire Publishing grouP, all rights reserved. 182 • THE BERKSHIRE ENCYCLOPEDIA OF SUSTAINABILITY: MEASUREMENTS, INDICATORS, AND RESEARCH METHODS FOR SUSTAINABILITY Table 1. Comparison of GNH and Traditional Development Paradigms UN Millennium Traditional GNH Development Goals Development Seeks to maximize Individual and national Social welfare Strong economies (as happiness measured by gross national product and gross domestic product) Needs to be met Material, spiritual, and Peace and security, human rights, Material, through emotional and sustainable development, international economic primarily through provision of cooperation education, health, and
Recommended publications
  • Gross National Happiness and Human Development – Searching for Common Ground
    Gross National Happiness and Human Development – Searching for Common Ground Opening statement to the Workshop Lyonpo Jigmi Y. Thinley Chairman of the Council of Minister May I first of all express my immense pleasure to be here this morning to attend the inauguration of this important workshop. I would like to thank Lyonpo Yeshey Zimba, Chairman of the Planning Commission, for his warm words of welcome to all of us. I would like to extend my own greetings and welcome to all the participants from both Bhutan and other countries. All of you have taken considerable trouble to contribute to the discussion on Gross National Happiness, which was first enunciated by His Majesty the King. Your abiding interest in the concept has been one of the main stimuli to organise this workshop. I am glad to note that almost all of you, who responded to Kuensel’s publication of the keynote speech I made in the UNDP Millennium Meeting for Asia and the Pacific in Seoul, are present in the workshop. I would like to take this opportunity to say how very much I appreciated your contributions that helped to bring many aspects of the concept to the fore. The intellectual management and guidance of today’s workshop is in the hands of two experts in the area: Mr. A. K. Shiva Kumar, an economist and Mr. Sudhir Kakar, a psychological anthropologist. We thank UNDP for the support to field them, as well as for their generous assistance in many spheres of human development activities. The combination of a distinguished economist and a leading psychological anthropologist, as facilitators, is most appropriate for this workshop.
    [Show full text]
  • Gross Domestic Product (GDP)
    1 SECTION Gross Domestic Product ross domestic product (GDP) is a measure of a country’s economic output. GDP per capita and GDP Gper employed person are related indicators that provide a general picture of a country’s well-being. GDP per capita is an indicator of overall wealth in a country, and GDP per employed person is a general indicator of productivity. 8 CHARTING INTERNATIONAL LABOR COMPARISONS | SEPTEMBER 2012 U.S. BUREAU OF LABOR STATISTICS | www.bls.gov Gross domestic product, selected countries, in U.S. dollars, 2010 United States China Japan CHART India 1.1 Germany Gross domestic United Kingdom France product (GDP) Brazil was more Italy than 14 trillion Mexico dollars in the Spain South Korea United States Canada and exceeded Australia 4 trillion Poland dollars in only Netherlands Argentina three other Belgium countries: Sweden China, Japan, Philippines and India. Switzerland Austria In addition to China Greece Singapore and India, other large Czech Republic emerging economies, Norway such as Brazil and Portugal Mexico, were among the Israel 10 largest countries in Denmark terms of GDP. Hungary Finland The GDP of the United Ireland States was roughly 5 New Zealand times larger than that of Slovakia Germany, 10 times larger Estonia than that of South Korea, 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Trillions of 2010 U.S. dollars and 40 times larger than that of the Philippines. NOTE: GDP is converted to U.S. dollars using purchasing power parities (PPP). See section notes. SOURCES: U.S. Bureau of Labor Statistics and The World Bank.
    [Show full text]
  • A Tool for Bridging Digital Divide in Bhutan Binu Thomas Lecturer, Computer Science and Th
    Geographic Information System - A Tool for Bridging Digital Divide in Bhutan Binu Thomas Lecturer, Computer Science And Th. Shanta Kumar Lecturer, Computer Science Dept. of Mathematics and Computer Science Sherubtse College, Kanglung Bhutan Abstract Digital Divide refers to the gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard to their opportunities to access information and communication technologies (ICTs) vis-à-vis their ability to use digital information for a wide variety of activities. The success of any developing country in the modern world depends on its ability to use the potentials of ICT in the process of development. Geographical Information System (GIS) is a potentially powerful device for integrating, manipulating and communicating information and it can be used as a powerful tool to bridge the Digital Divide by creating valuable reports and map representation for developing infrastructure and community development. Bhutan finds ICT as a driving force for the promotion of a sustainable, dynamic and vibrant Information Society, contributing to poverty alleviation, robust economic growth and significant increase in GNP. But Bhutan’s rugged geography and isolated, land- locked status makes digital divide a serious concern in its endeavor for development through ICT. In the light of these, the paper attempts to provide an insight about the extent of Digital Divide in Bhutan and its effect on the country’s pursuit of economic development and “Gross National Happiness” with the support of ICT. The paper also tries to emphasize on the role of GIS in bridging the Digital Divide in Bhutan by mapping the locations for infrastructure and community centre development.
    [Show full text]
  • In Pursuit of Happiness, Bhutan Opens to Globalization and Business
    In Pursuit of Happiness, Bhutan Opens to Globalization and Business Kimberly A. Freeman, Ph.D. Mercer University Katherine C. Jackson Mercer University ABSTRACT The Kingdom of Bhutan, a small country situated on the border between China and India, has in recent years become a constitutional democratic monarchy. As part of its 2008 constitution, Bhutan committed to promote conditions that would enable the pursuit of Gross National Happiness. The country thus initiated an effort to improve the quality of life and happiness for its citizens and has embraced globalization far more than previously through attracting business, tourism, and communications. The author’s herein address some of the initiatives provide the context within which these efforts have arisen. Keywords: Bhutan; Gross National Happiness (GNH); Globalization; Constitutional democratic monarchy 1. Introduction In 2006, the 4th King of Bhutan, Jigme Singye Wangchuck, decided he wanted to open Bhutan up to the world and usher in modernization. Forty years ago, in 1972, Bhutan’s fourth king stated that “Bhutan should pursue Gross National Happiness (GNH) rather than Gross National Product (GNP)…with an emphasis not only on economic growth, but also on culture, mental health, social values, compassion, and community” (Sachs, 2011, p. 2) He chose to abdicate the throne to his eldest son and announced Bhutan would hold its first general elections in 2008. His son, King Jigme Khesar Namgyal Wangchuck, took the throne of the new democratic Bhutan on December 14, 2006. Jigme Yoser Thinley was elected prime minister in the election, and Bhutan’s constitution was ratified on July 18, 2008. The concept of GNH has a very long history in Bhutan.
    [Show full text]
  • A Better Measure of Economic Growth: Gross Domestic Output (Gdo)
    COUNCIL OF ECONOMIC ADVISERS ISSUE BRIEF JULY 2015 A BETTER MEASURE OF ECONOMIC GROWTH: GROSS DOMESTIC OUTPUT (GDO) The growth of total economic output affects our assessment of current well-being as well as decisions about the future. Measuring the strength of the economy, however, can be difficult as it depends on surveys and administrative source data that are necessarily imperfect and incomplete. The total output of the economy can be measured in two distinct ways—Gross Domestic Product (GDP), which adds consumption, investment, government spending, and net exports; and Gross Domestic Income (GDI), which adds labor compensation, business profits, and other sources of income. In theory these two measures of output should be identical; however, they differ in practice because of measurement error. With today’s annual revision, the Bureau of Economic Analysis (BEA) began publishing a new measure of U.S. output—the “average of GDP and GDI”—which the Council of Economic Advisers (CEA) will refer to as Gross Domestic Output (GDO).1 This issue brief describes GDO, reviews its recent trends, and explains why it can be a more accurate measure of current economic growth and a better predictor of future economic growth than either GDP or GDI alone. What is Gross Domestic Output (GDO)? The first estimate of quarterly GDP is released nearly a month after each quarter’s end. Owing to data lags, GDI What we are calling “GDO” is the average of two existing is generally first released nearly two months after series, the headline Gross Domestic Product (GDP) and quarter’s end, along with the second estimate of GDP.2 its lesser-known counterpart, Gross Domestic Income As a result, with today’s advance GDP release, GDI and (GDI).
    [Show full text]
  • Development and Its Impacts on Traditional Dispute Resolution in Bhutan
    Washington University Journal of Law & Policy Volume 63 New Directions in Domestic and International Dispute Resolution 2020 Formalizing the Informal: Development and its Impacts on Traditional Dispute Resolution in Bhutan Stephan Sonnenberg Seoul National University School of Law Follow this and additional works at: https://openscholarship.wustl.edu/law_journal_law_policy Part of the Comparative and Foreign Law Commons, and the Dispute Resolution and Arbitration Commons Recommended Citation Stephan Sonnenberg, Formalizing the Informal: Development and its Impacts on Traditional Dispute Resolution in Bhutan, 63 WASH. U. J. L. & POL’Y 143 (2020), https://openscholarship.wustl.edu/law_journal_law_policy/vol63/iss1/11 This Article is brought to you for free and open access by the Law School at Washington University Open Scholarship. It has been accepted for inclusion in Washington University Journal of Law & Policy by an authorized administrator of Washington University Open Scholarship. For more information, please contact [email protected]. FORMALIZING THE INFORMAL: DEVELOPMENT AND ITS IMPACTS ON TRADITIONAL DISPUTE RESOLUTION IN BHUTAN Stephan Sonnenberg* INTRODUCTION Bhutan is a small landlocked country with less than a million inhabitants, wedged between the two most populous nations on earth, India and China.1 It is known for its stunning Himalayan mountain ranges and its national development philosophy of pursuing “Gross National Happiness” (GNH).2 This paper argues, however, that Bhutan should also be known for its rich heritage of traditional dispute resolution. That system kept the peace in Bhutanese villages for centuries: the product of Bhutan’s unique history and its deep (primarily Buddhist) spiritual heritage. Sadly, these traditions are today at risk of extinction, victims—it is argued below—of Bhutan’s extraordinary process of modernization.
    [Show full text]
  • Income, Expenditures, Poverty, and Wealth
    Section 13 Income, Expenditures, Poverty, and Wealth This section presents data on gross periodically conducts the Survey of domestic product (GDP), gross national Consumer Finances, which presents finan- product (GNP), national and personal cial information on family assets and net income, saving and investment, money worth. The most recent survey is available income, poverty, and national and at <http://www.federalreserve.gov/pubs personal wealth. The data on income and /oss/oss2/scfindex.html>. Detailed infor- expenditures measure two aspects of the mation on personal wealth is published U.S. economy. One aspect relates to the periodically by the Internal Revenue National Income and Product Accounts Service (IRS) in SOI Bulletin. (NIPA), a summation reflecting the entire complex of the nation’s economic income National income and product— and output and the interaction of its GDP is the total output of goods and major components; the other relates to services produced by labor and prop- the distribution of money income to erty located in the United States, valued families and individuals or consumer at market prices. GDP can be viewed in income. terms of the expenditure categories that comprise its major components: The primary source for data on GDP, GNP, personal consumption expenditures, national and personal income, gross gross private domestic investment, net saving and investment, and fixed assets exports of goods and services, and gov- and consumer durables is the Survey of ernment consumption expenditures and Current Business, published monthly by gross investment. The goods and services the Bureau of Economic Analysis (BEA). included are largely those bought for final A comprehensive revision to the NIPA use (excluding illegal transactions) in the was released beginning in July 2009.
    [Show full text]
  • Gross National Happiness in Bhutan: a Living Example of an Alternative Approach to Progress
    University of Pennsylvania ScholarlyCommons Social Impact Research Experience (SIRE) Wharton Undergraduate Research 9-2009 Gross National Happiness in Bhutan: A Living Example of an Alternative Approach to Progress Alejandro Adler University of Pennsylvania Follow this and additional works at: https://repository.upenn.edu/sire Part of the Business Commons, and the Social and Cultural Anthropology Commons Adler, Alejandro, "Gross National Happiness in Bhutan: A Living Example of an Alternative Approach to Progress" (2009). Social Impact Research Experience (SIRE). 1. https://repository.upenn.edu/sire/1 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/sire/1 For more information, please contact [email protected]. Gross National Happiness in Bhutan: A Living Example of an Alternative Approach to Progress Abstract As a society we care about what we measure, we use what we measure, and what we measure drives policies and society in a particular direction. We therefore need to measure progress correctly. If societies blindly accept GDP as their measure of progress, they might be trying to maximize the wrong indicator for society. In this paper I present Bhutan as a living example of a society that has opened a national dialogue about what progress means, and they have created the Gross National Happiness (GNH) index to reflect their understanding of progress. Furthermore, the political and economic architecture of Bhutan is structured around maximizing GNH rather than GDP. Institutions in Bhutan use the GNH index and a series of instruments of policy to construct policies that promote GNH. We can draw a number of lessons from the Bhutanese experiment, namely that each individual society should strive to answer the following three questions: • What does progress mean? • How do we develop indicators that measure progress? • How de we use indicators to shape policies and institutions? All societies seek to create wellbeing for individuals.
    [Show full text]
  • 3. GDP Per Capita
    GROSS DOMESTIC PRODUCT (GDP) 3. GDP per capita Gross Domestic Product (GDP) per capita is a core indicator needed in interpretation, for example Luxembourg and, to a of economic performance and commonly used as a broad lesser extent, Switzerland have a relatively large number of measure of average living standards or economic well- frontier workers. Such workers contribute to GDP but are being; despite some recognised shortcomings. excluded from the population figures, which is one of the For example average GDP per capita gives no indication of reasons why cross-country comparisons of income per how GDP is distributed between citizens. Average GDP per capita based on gross or net national income (GDI and NNI) capita may rise for example but more people may be worse are often preferred, see second chapter on Income. (See also off if income inequalities also increase. “Reader’s guide”, relating to PPP based comparisons.) Equally, in some countries (see Comparability), there may be a significant number of non-resident border or seasonal Source workers or indeed inflows and outflows of property income • OECD (2012), National Accounts of OECD Countries, OECD and both phenomena imply that the value of production Publishing, http://dx.doi.org/10.1787/2221433x. differs from the income of residents, thereby over or under- stating their living standards. Online database A full discussion of these issues can be found in the Stiglitz-Sen-Fitoussi report (see “Further reading”). • OECD (2012), “Aggregate National Accounts: Gross domestic product”, OECD National Accounts Statistics (database), http://dx.doi.org/10.1787/data-00001-en. Definition Further reading The definition for GDP is described in Section 1 and • Lequiller, F.
    [Show full text]
  • Hungary (24 June 2021)
    Coronavirus response in 2021: building back better Update on Hungary (24 June 2021) Covid-19 policy response EBRD assessment of transition qualities (ATQs), 20201 • The authorities implemented a major policy response in 2020, amounting to around 18 per cent of gross domestic product (GDP), focused on income support for vulnerable individuals, liquidity Competitive Inclusive support for businesses and budgetary support for the health sector. Well-governed Resilient • Covid-19-related fiscal measures in 2021 are projected at 12 per cent of GDP, with continued spending on pandemic protection and support for the economic recovery, including a value-added Green Integrated tax cuts on new housing, more money for the pandemic control fund and a wage hike for doctors. • Substantial European Union (EU) funds will help boost the short-term recovery. Hungary is 0 2 4 6 8 10 0 2 4 6 8 10 expected to receive about €41 billion in total from the bloc’s regular multiannual financial Hungary EBRD Advanced comparators framework (MFF) and an extraordinary Covid-19 recovery fund. Building back better: key ongoing initiatives Macroeconomic indicators (%) The government is adding HUF 30 billion (around €86 million) to its existing Competitive competitiveness programme for companies that maintain employment at current levels. 2018 2019 2020 Short-term indicators The government is supporting investments in residential solar power systems and the Green electrification of residential heating systems. EBRD GDP growth forecast (June 2021) GDP growth 5.4 4.6 -5.0 Water management reform is set to boost Hungary's resilience to climate change and to 2021: 5.5%; 2022: 4.8% Resilient Annual inflation (end-year) -0.4 0.3 0.3 improve the conditions of drought-prone ecosystems.
    [Show full text]
  • Gross National Happiness
    GROSS NATIONAL HAPPINESS Prarthana Gupta ([email protected] ) (Discussion paper put together as volunteer with Kalpavriksh, March 2014) Introduction This paper seeks to understand the basics of the Gross National Happiness Index (from here on referred to as the ‘GNH’), from it development and analyse its evolution over the many years it has been an integral part of Bhutan’s development. The term ‘Gross National Happiness’, was first coined by the 4 th King of Bhutan Jigme Singye Wangchuck. The 1729 legal code declared that “if the Government cannot create happiness ( dekid ) for its people, there is no purpose for the Government to exist.” 1 In 1972, the 4th King declared Gross National Happiness to be more important than GNP. ‘Happiness’ is defined as a measure of not only subjective well-being to the other exclusion of other dimensions, thus making this measure multi-dimensional, and internalises other regarding motivations. This paper is broadly divided into three sections, each referring to a different aspect of the GNH. The sections have been made to facilitate easy understanding of the concept of GNH, methodology of its application, analysis of its performance: advantages and problems faced, and mapping its evolution. SECTION 1: The Concept of GNH as used in Bhutan GNH as a measure of development is given prime importance as the measure of growth than the conventionally used GNP/GDP measure my all other countries. Happiness has naturally evolved from the constituent features of Bhutanese society before 1959, a socio-economic system based on a Buddhist and feudal set of values. This reiterated the fact that Bhutan’s yard-stick of economic development has been the well-being of its people, rather than the economic progress the country is making.
    [Show full text]
  • "The Macroeconomics of Happiness." (Pdf)
    The Macroeconomics of Happiness Author(s): Rafael Di Tella, Robert J. MacCulloch and Andrew J. Oswald Source: The Review of Economics and Statistics, Vol. 85, No. 4 (Nov., 2003), pp. 809-827 Published by: The MIT Press Stable URL: https://www.jstor.org/stable/3211807 Accessed: 25-11-2019 16:44 UTC JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at https://about.jstor.org/terms The MIT Press is collaborating with JSTOR to digitize, preserve and extend access to The Review of Economics and Statistics This content downloaded from 206.253.207.235 on Mon, 25 Nov 2019 16:44:09 UTC All use subject to https://about.jstor.org/terms THE MACROECONOMICS OF HAPPINESS Rafael Di Tella, Robert J. MacCulloch, and Andrew J. Oswald* Abstract-We show that macroeconomic movements have omitted strong from effects economists' standard calculations of the cost on the happiness of nations. First, we find that there are clear microeco- of cyclical downturns. nomic patterns in the psychological well-being levels of a quarter of a million randomly sampled Europeans and Americans from In thespite 1970s of a longto tradition studying aggregate economic the 1990s. Happiness equations are monotonically increasing fluctuations, in income, there is disagreement among economists about and have similar structure in different countries.
    [Show full text]