Living in a material world: Happy Income and Happy Life Years

Aloys Prinz and Björn Bünger

No 200116, Working Papers from Institute of Spatial and Housing Economics, Munster Universitary

Abstract: In the following we will propose an indicator that focuses on physical as well as socio-psychic wellbeing. At its core, this indicator is a modification of Ruut Veenhoven’s concept of Happy Life Years and it is called Happy Income. This indicator is constructed on the intention that the socio-economic well-being of the people of a nation is based on their income as well as on their subjective evaluation of their life. In addition to define the indicator, we will also employ it in order to measure social wellbeing in several European countries and to compare the resulting ranking of countries with the ranking of the same countries according to the Happy Life Years (HLY) index.

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