A Positive Relationship: Difference between revisions
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The graph below demostrates a correlation between per capita gdp and happiness. It is increasing at a decreasing rate. This basically says that if there was an increase in the poorest countries in wealth and gdp, this would translate into a greater increase in happiness. Once the 15,000 barrier is crossed however, the correlation begins to break down and increases in wealth and GDP seem to have little or no effect | |||
[[Image:Gdp.JPG|thumb|Description]] | [[Image:Gdp.JPG|thumb|Description]] | ||
Revision as of 21:55, 10 April 2006
So does a higher GDP have permanent effects on a nation’s happiness? GDP does help buy extra happiness. But other factors have been forming throughout the years that have gradually offset the benefits of extra real income. To make this correlation easier to find we used the ‘GDP in a happiness Regressions’ equation, provided in the essay, The Macroeconomics of Happiness.” The equation is as follows:
- HAPPYjit: well-being level reported by an individual ‘j’ in country ‘i’ in the year ‘t’
- GDPit: Gross Domestic Product per capita in that country
- PERSONALjit: Personal characteristics of respondents (income, marital status, education, employed/unemployed, age)
The graph below demostrates a correlation between per capita gdp and happiness. It is increasing at a decreasing rate. This basically says that if there was an increase in the poorest countries in wealth and gdp, this would translate into a greater increase in happiness. Once the 15,000 barrier is crossed however, the correlation begins to break down and increases in wealth and GDP seem to have little or no effect
