Does Effective Social Policy Guarantee Happiness?

In the paper it is questioned whether effective state social policy provides happiness and social progress. For this purpose selected correlations between Human Development Index (HDI), share of public social expenditures in GDP, the Happy Planet Index (HPI), GDP per capita, and Government Effectiveness are examined and the results are graphically presented. It is shown how a government can affect well-being and happiness in different countries of modern world. Also, it is tested the hypothesis about existence of a certain optimum of well-being and public social expenditures, which affect direction of social progress. It is concluded that efficient social policy and wealth are not the only factors determining human happiness.




References:
[1] J. Bentham, An Introduction to the Principles of Morals and
Legislation. Oxford: Clarendon Press, 1789.
[2] F. Y. Edgeworth, Mathematical Psychics: An Essay on the Application
of Mathematics to the Moral Sciences. London, UK: Kegan Paul, 1881.
[3] H. Theil, Optimal Decision Rules for Government and Industry.
Amsterdam: North Holland, 1964.
[4] J. Tinbergen, Economic Policy: Principles and Design. Amsterdam:
North Holland, 1956.
[5] D. Kahneman, A. B. Krueger, "Developments in the measurement of
subjective well-being," Journal of Economic Perspectives, vol. 20,
issue 1, pp. 3-24, Winter 2006.
[6] R. Veenhoven, Conditions of Happiness. Kluwer Academic, Dordrecht,
Boston, 1984.
[7] R. A. Easterlin, "Does Economic Growth Improve the Human Lot?
Some Empirical Evidence," in Nations and Households in Economic
Growth: Essays in Honour of Moses Abramowitz, Paul A. David and
Melvin W. Reder, Ed. New York and London: Academic Press, 1974,
pp. 89-125.
[8] E. Durkheim, The Division of Labor in Society. Moscow: Nauka Press,
1991.
[9] K. Honkanen, R. Honkanen, H. Viinamaki, K. Heikkila, J. Kaprio, and
M. Koskenvuo, "Life Satisfaction and Suicide: A 20-Year Follow-up
Study," American Journal of Psychiatry, vol. 158, issue 3, pp. 433-439,
March 2001.
[10] F. Grillo, S. Benians, M. Cirovic, A. Parvez, and G. Emma, "The pursuit
of happiness (Ethics, politics, globalization and economics of wellbeing),--
The Italian Thinktank Draft. Rome, June 2010. Position Paper.
[11] R. Veenhoven, ÔÇÿÔÇÿIs happiness relative?," Social Indicators Research,
vol. 24, February 1991, pp.1-34.
[12] J. J. Ehrhardt, W. E. Saris, and R. Veenhoven, "Stability of Life-
Satisfaction over Time: Analysis of Change in Ranks in a National
Population," Journal of Happiness Studies, vol. 1, no. 2, June 2000, pp.
177-205.
[13] R. Veenhoven, "Is happiness a trait? Tests of the theory that a better
society does not make people any happier", Social Indicators Research,
vol. 32, no. 2, June 1994, pp. 101-160.
[14] R. Veenhoven, Happiness in Nations: Subjective Appreciation of Life in
56 nations 1946-1992. RISBO: Erasmus University Rotterdam, 1993.
[15] R. A. Cummins, "Personal income and subjective well-being: a review",
Journal of Happiness Studies, vol. 1, no. 2, June 2000, pp. 133-158.
[16] B. Headey and A. Wearing, Understanding happiness, a theory of
subjective wellbeing. Longman Cheshire, Melbourne, 1992.
[17] R. Veenhoven, "The four qualities of life", Journal of Happiness
Studies, vol. 1, March 2000, pp. 1-39.
[18] R. Veenhoven, "Wellbeing in the welfare state: level not higher,
distribution not more equitable", Journal of Comparative Policy
Analysis, vol. 2, no.1, April 2000, pp. 91-125.
[19] F. Grillo, S. Benians, M. Cirovic, A. Parvez, and G. Emma, "The pursuit
of happiness (Ethics, politics, globalization and economics of wellbeing),--
The Italian Thinktank Draft. Rome, June 2010. Position Paper.
[20] A. Alesina, E. Glaeser, and B. Sacerdote, "Work and leisure in the
United States and Europe: why so different?", in NBER
Macroeconomics Annual 2005. Mark Gertler and Kenneth Rogoff, Ed.
Cambridge, MA: MIT Press, pp. 1-64.
[21] E. Diener, M. Seligman, "Beyond money: toward an economy of wellbeing",
Psychological Science in the Public Interest, vol. 5, no. 1, July
2004, pp. 1-31.
[22] Measuring economic performance and social progress: the findings of
the Stiglitz-Sen-Fitoussi Commission, Trésor-Economics, no. 67,
December 2009, pp. 1-9.
[23] A.K. Sen, Commodities and Capabilities. Amsterdam: North Holland,
1985.
[24] B. S. Frey, A. Stutzer, Should National Happiness Be Maximized? Institute
for Empirical Research in Economics University of Zurich, 2007.
Working Paper No. 306.
[25] E. Diener, Guidelines for National Indicators of Subjective Well-Being
and Ill-Being. Mimeo, University of Illinois at Urbana Champaign,
2005.
[26] D. Kahneman, A. B. Krueger, "Developments in the measurement of
subjective well-being," Journal of Economic Perspectives, vol. 20,
issue 1, pp. 3-24, Winter 2006.
[27] D. Kahneman, E. Diener, and N. Schwarz (eds), Well-Being: The
Foundations of Hedonic Psychology. New York, NY: Russell Sage
Foundation, 1999.
[28] J. J. Ehrhardt, W. E. Saris, and R. Veenhoven, "Stability of Life-
Satisfaction over Time: Analysis of Change in Ranks in a National
Population," Journal of Happiness Studies, vol. 1, no. 2, June 2000, pp.
177-205.
[29] U. Schimmack, S. Oishi, "The influence of chronically and temporarily
accessible information on life satisfaction judgments", Journal of
Personality and Social Psychology, vol. 89, no. 3, September 2005,
pp. 395-406.
[30] J.-M. Fernández-Dols, M.-A. Ruiz-Belda, "Are smiles a sign of
happiness? Gold medal winners at the Olympic games", Journal of
Personality and Social Psychology, vol. 69, no. 6, December 1995, pp.
1113-1119.
[31] H. S. Lepper, "Use of other-reports to validate subjective well-being
measures", Social Indicators Research, vol. 44, no. 3, July 1998, pp.
367-379.
[32] E. Sandvik, E. Diener, and L. Seidlitz, "Subjective well-being: the
convergence and stability of self-report and non-self-report measures"
Journal of Personality, vol. 61, issue 3, September 1993, pp. 317-342.
[33] P.T. Costa, R.R. McCrae, "Personality in adulthood: a six-year
longitudinal study of self-reports and spouse ratings on the neo
personality inventory", Journal of Personality and Social Psychology,
vol. 54, no. 5, May 1988, pp. 853-863.
[34] R. H. Frank, "The frame of reference as a public good", Economic
Journal, vol. 107, issue 445, November 1997, pp. 1832-1847.
[35] B.S. Fre, A. Stutzer, "What can economists learn from happiness
research?", Journal of Economic Literature, vol. 40, issue 2, June 2002,
402-435.
[36] F. Heylighen, J. Bernheim, "Measuring Global Progress Through
Subjective Well-Being", in 2001 Proc. 3rd Conference of the ISQOLS
(University of Girona Press), pp. 515-528.
[37] E. Diener, Guidelines for National Indicators of Subjective Well-Being
and Ill-Being. Mimeo, University of Illinois at Urbana Champaign,
2005.
[38] D. Kahneman, A. B. Krueger, D. A. Schkade, N. Schwarz, and A. A.
Stone, "Toward National Well-Being Accounts", American Economic
Review, vol. 94, issue 2, May 2004, pp. 429-434.
[39] R. Di Tell, R. MacCulloch, "Some Uses of Happiness Data in
Economics", Journal of Economic Perspectives, vol. 20, issue 1, Winter
2006, pp. 25-46.
[40] R. Di Tella, R. J. MacCulloch, and A. J. Oswald, "Preferences over
inflation and unemployment: evidence from surveys of happiness",
American Economic Review, vol. 91(1), issue 1, March 2001, pp. 335-
341.
[41] R. Di Tella, R. J. MacCulloch, and A. J. Oswald, "The Macroeconomics
of Happiness", Review of Economics and Statistics, vol. 85, no. 4,
November 2003, pp. 809-827.
[42] C. R. Sunstein, Willingness to Pay Versus Welfare. Mimeo, University
of Chicago, 2007.
[43] United Nations, Human Development Report 2010: The Real Wealth of
Nations: Pathways to Human Development. Palgrave Macmillan, New
York, 2010.
[44] G.W. Scully, National Center for Policy Analysis Report no. 232,
Dallas: NCPA, 2000.
[45] OECD Factbook 2010: Economic, Environmental and Social Statistics.
Paris: OECD, 2010.
[46] United Nations, Human Development Report 2010: The Real Wealth of
Nations: Pathways to Human Development. Palgrave Macmillan, New
York, 2010.
[47] United Nations, Human Development Report 2010: The Real Wealth of
Nations: Pathways to Human Development. Palgrave Macmillan, New
York, 2010.
[48] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[49] R. Di Tella, R. J. MacCulloch, and A. J. Oswald, "The Macroeconomics
of Happiness", Review of Economics and Statistics, vol. 85, no. 4,
November 2003, pp. 809-827.
[50] Prosperity Without Growth? The Transition to a Sustainable Economy.
Sustainable Development Commission Report, 2009.
[51] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[52] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[53] D. Kaufmann, A. Kraay, and M. Mastruzzi, The Worldwide Governance
Indicators: A Summary of Methodology, Data and Analytical Issues.
World Bank Policy Research, 2010.
[54] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[55] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[56] D. Kaufmann, A. Kraay, and M. Mastruzzi, The Worldwide Governance
Indicators: A Summary of Methodology, Data and Analytical Issues.
World Bank Policy Research, 2010.
[57] S. Abdallah, S. Thompson, J. Michaelson, N. Marks, and N. Steuer, The
(un)Happy Planet Index 2.0. Why good lives don-t have to cost the
Earth. London: NEF, 2009.
[58] D. Kaufmann, A. Kraay, and M. Mastruzzi, The Worldwide Governance
Indicators: A Summary of Methodology, Data and Analytical Issues.
World Bank Policy Research, 2010.