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Abstract


Happy Planet Index: Panel Data Evidence from the Happiest Parts of the World
While the concept of happiness is the ultimate goal that individuals aim to achieve in their lives, economists performed happiness meas-urements based on macroeconomic parameters. In recent years, it has been understood that the social, political and cultural indicators of countries have an impact on the happiness of individuals as well as their economic performance. New generation happiness indexes focusing on factors such as life expectancy, ecological footprint, in-come distribution, sustainable environment, it has placed countries such as Costa Rica, Mexico and Vanuatu at the top of the list of happi-ness. The aim of this study is to examine the relationships between happiness and macroeconomic, social and political indicators based on the happiest countries in the world. In this study, the Happy Plan-et Index (HPI) calculated by the New Economics Foundation was considered as a relatively new indicator of happiness. During the analysis phase, panel data analysis techniques were applied to the data set covering the twenty happiest countries in the world in 2006-2016 period. This study finds that conventional macroeconomic indi-cators are statistically significant in explaining HPI, though the rela-tionship is negative. Causal relationships between social and political indicators and HPI were also determined.

Keywords
Happiness, Happy Planet Index, Panel Regression Analysis.


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