Dynamics of Economics of Happiness and An Evaluation on Researches About This Subject

Abstract

Happiness is formed as a result of combination by demographic factors, economic factors, physical environment, social environment and the socioeconomic status of the country. These variables may differ from individual to individual, but may also vary in different states, in different geographical regions or in societies with different values.

In recent years, studies on the relationship between happiness and economics have increased in the literature. Happiness is a phenomenon that affects human life both individually and socially. For this reason, happiness affects the economic structure of people and societies, and on the other hand, it is very clearly affected by the economic structure and situation of individuals and society.

The concept of Gross National Happiness (GNH), which emerged in 1972, says that happiness index should be looked at instead of GDP in comparing welfare of countries. According to the Easterlin Paradox, which is a key concept in happiness literature, the economic growth in the society can only meet the basic needs of the society. For this reason, policy makers should focus more on the happiness of society at the point where these basic needs are met.

In this study,  the literature of economics of happiness will be pleased since the 1970s and will be focused on “Life Satisfaction Search” which is an annual basis dataset that published by Turkish Statistical Instutite” since today the by 2004 with data from the research world happiness and data taken from the report, Turkey's Gross Domestic Product will put forward a causal relationship by comparing the output data.

In this study firstly the literature of happiness economics will be held starting from the 1970s, and secondly the causality relationship between GDP and happiness index will be investigated in terms of Turkey. Furthermore,  we took happiness index data from the “Life Satisfaction Search” data set  which has been published annually since 2004, and the GDP data from the “Turkish Statistical Institute”.