Happiness, Economy and Institutions

Bruno Frey and Alois Stutzer

No 15, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: A cross-regional econometric analysis suggests that institutional factors in the form of direct democracy (via initiatives and referenda) and of federal structure (local autonomy) systematically and sizeably raise self-reported individual well-being. This positive effect can be attributed to political outcomes closer to voters' preferences, as well as to the procedural utility of political participation. Moreover, the results of "standard" microeconometric well-being functions previously published for other countries are generally supported. Unemployment has a strongly depressing effect on happiness. A higher income level raises happiness, however, only to a small extent.

Keywords: subjective well-being; institutions; direct democracy; unemployment (search for similar items in EconPapers)
JEL-codes: D60 D72 H10 I31 (search for similar items in EconPapers)
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Citations: View citations in EconPapers (1142)

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Journal Article: Happiness, Economy and Institutions (2000)
Working Paper: Happiness, Economy and Institutions (2000)
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