Abstract: This study utilizes the quantile regression analysis to examine the impact of governance (including democratic quality and technical quality) on happiness in 101 countries worldwide, classified as “developed countries” and “developing countries”. The empirical results show that the impact of democratic quality and technical quality on happiness is significantly positive for “developed countries”, while is insignificant for “developing countries”. The results suggest that the authorities in developed countries can enhance the level of individual happiness by means of improving the democracy quality and technical quality. However, for developing countries, promoting the quality of governance in order to enhance the level of happiness may not be effective. Policy makers in developed countries may pay more attention on increasing real GDP per capita instead of promoting the quality of governance to enhance individual happiness.
Abstract: This paper develops the fiscal health index of 21 local
governments in Taiwan over the 1984 to 2010 period. A quantile
regression analysis was used to explore the extent that economic
variables, political budget cycles, and legislative checks and balances,
impact different quantiles of fiscal health index for a country over a
sample period of time. Our findings suggest that local governments at
the lower quantile are significantly benefited from political budget
cycles and the increase in central government revenues, while
legislative effective checks and balances and the increase in central
government expenditures have a significantly negative effect on local
fiscal health. When local governments are in the upper tail of the
distribution, legislative checks and balances and growth in
macroeconomics have significant and adverse effects on the fiscal
health of local governments. However, increases in central
government revenues have significant and positive effects on the
health status of local government in Taiwan.