naveed - Macroeconomic Determinants of Poors Happiness A...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomic Determinants of Poor’s Happiness: A Case Study of Pakistan Muhammad Shahbaz and Naveed Aamir Abstract There is not much research on welfare-economics from human wellbeing (happiness) side, the main reason is that this is qualitative and subjective phenomenon & not so easy to capture for measurement. In the present endvour, we tried to capture it (happiness) from the opposite side of poverty index. We employed modified ARDL technique for long run friendship between Poor’s happiness and some macroeconomic influencing factors; short run dynamic behavior is scrutinized through ECM. The findings about Poor’s happiness and its determinants show that happiness of poor individuals is highly influenced from macroeconomics shocks prevailed in the economy. Economic growth or rise in GDP per capita declines the level of Poor’s happiness due to upper- echelon phenomenon in long span of time in Pakistan. Inflation influences the purchasing power of poor segments of population and definitely affects the happiness negatively in both the periods. Enhancement in remittances seems to push happiness or Poor’s welfare levels upward significantly. Increase in indirect taxes especially sales taxes associated with low levels of happiness of poor individuals in a small developing economy like Pakistan. Trade-openness improves happiness rankings of poor segments of population through its direct & indirect channels. Finally, a low level of happiness is associated with low urbanization in short span of time. Key Words: Happiness, modified ARDL Co-integration, JEL Classification: I31, C22 Research Officer at Social Policy and Development Centre in Karachi, Pakistan. Economist at Social Policy and Development Centre in Karachi, Pakistan.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Introduction The debate between the fact that is it population that is increasing poverty or is it increasing poverty accompanied by the lack of education and civic amenities that justifies a poor persons status - is still need to be resolved along-with the policies to be formulated at the national level. But all this leads us to another query as to whatever the efforts are put forth by the governments in raising the level of GNP/GDP, is it really translating into the well being of an individual and enhancing the level of human development? Several studies find that happiness has some linkages to future economic success [Pollak, (1970); Eastern, (1974); Veenhoven, (1993); Clark and Oswald, (1994); Winkelmann and Winkelmann, (1998) and, Diener and Biswas-Diener, (1999)]. The reality is that life opportunities for a number of people are expanding. Unfortunately, at the same time there is considerably a large number of people who are still caught in the vicious circle of poverty and misery, ill health and lack of opportunities. Richard Easterlin (1974) was the first economist to make prominent use of happiness data when he reported that despite increases in personal income over time, people were not reporting an
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/24/2011 for the course UNIV 2201 taught by Professor Staff during the Fall '08 term at UGA.

Page1 / 27

naveed - Macroeconomic Determinants of Poors Happiness A...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online