Happy PIIGS?

Abstract

This paper investigates the causality dynamics between happiness and per capita GDP growth and the impact of the recent financial crisis using a VAR-GARCH model for 10 European EMU countries divided in peripheral and non-peripheral members. The rationale of the analysis is to look at the two different dimensions (mean and variance) of economic growth and happiness within a time-series framework. The results show that GDP growth has significant positive effects on happiness in all countries considered, particularly in the PIIGS countries; happiness volatility is responsive to economic uncertainty. The size of this effect is bigger following the most recent crisis period, especially for the PIIGS countries. Our findings confirm the important role played by economic growth in determining population happiness and, most importantly, provides new evidence on the existence of causality linkages between economic uncertainty and happiness volatility.

Happiness perception in Spain, a SEM approach to evidence from the sociological research center

“…A wide range of academic product has been devoted to exploring the relationship between GDP and happiness (Núñez-Barriopedro et al 2018b). Many empirical results show the existence of a positive relation between both parameters in a long-term approach (Chiu and Wong 2018;Mikucka et al 2017;Bonasia et al 2017;Hagerty and Veenhoven 2003). According with this research, an extensive number of articles have demonstrated-using metric analysis of information contained in official data, elaboration of econometric models or by designing longitudinal or panel surveys, that the economic situation of the country have an impact on collective and personal happiness, especially when the following factors occur: financial crises, social inequalities, depreciation of wage incomes or degradation of the environment (Akay et al 2017;Gonza andBurger 2017: Cuñado andDe Gracia 2013;MacKerron and Mourato 2013).…”

Decent Work as a Necessary Condition for Sustainable Well-Being. A Tale of Pi(i)gs and Farmers

“…The "indecencies" are perceived especially in conditions such as the pace of work, dealing with angry customers, unsocial work schedules, inflexibility, poor organizational participation, low access to training, insecurity, limited professional expectations and, finally (and importantly), notably lower earnings. Although some recent studies have partially revealed this fact (e.g., [41], related to happiness; [42], linked to employment security; and, among others, [43], connected to incomes), as far as our knowledge is concerned, there is no published study that has done so with the overall approach used in this work. The picture that these results draw is in line with what was stated in our second research purpose.…”

Exploring the Geography of Subjective Happiness in Europe During the Years of the Economic Crisis: A Multilevel Modelling Approach

“…More recently, O'Conor (2017) presented an analysis of the impact of the Great Recession of 2008 upon happiness in the United States, highlighting the detrimental effect of declining income and rising unemployment. Bonasia et al (2018) in an article entitled Happy PIIGS? use data from the International Monetary Fund World Economic Outlook Database in combination with Ruut Veenhoven's World Database of Happiness data (2013) in order to examine the causality dynamics between happiness and focusing on differences between Portugal, Ireland, Italy, Greece and Spain (which, as also noted in the introduction, have been unfavourably labelled as PIIGS) and five other European countries (which are included in the group of countries typically described as creditors in many of the studies of the European economic crisis): Belgium, Denmark, France, Germany and the Netherlands (which they group together and label as non-PIIGS countries).…”