Working Paper: NBER ID: w26840
Authors: John F. Helliwell; Haifang Huang; Shun Wang
Abstract: This chapter uses happiness data to assess the quality of government. Our happiness data are drawn from the Gallup World Poll, starting in 2005 and extending to 2017 or 2018. In our analysis of the panel of more than 150 countries and generally over 1,500 national-level observations, we show that government delivery quality is significantly correlated with national happiness, but democratic quality is not. We also analyze other quality of government indicators. Confidence in government is correlated with happiness, however forms of democracy and government spending seem not. We further discuss three channels (including peace and conflict, trust, and inequality) whereby quality of government and happiness are linked. We finally summarize what has been learned about how government policies could be formed to improve citizens’ happiness.
Keywords: Happiness; Quality of Government; Life Evaluations; Government Delivery Quality; Democratic Quality
JEL Codes: H1; H5; I3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Government delivery quality (L87) | national happiness (I31) |
| Confidence in government (H11) | national happiness (I31) |
| Government delivery quality (L87) | Confidence in government (H11) |
| Conflict (D74) | national happiness (I31) |
| Absence of conflict (D74) | national happiness (I31) |
| Conflict deaths (F51) | national happiness (I31) |
| Democratic quality (D72) | national happiness (I31) |