A Positive Relationship

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:

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Description

• 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)