The Impact of Economic Freedom on Creating Happiness and Inequality: International Evidences

Abstract

It is remaining a big question in happiness economics, what is the common motto of human beings? What human beings want to achieve? Are these, money, good job, position, power, peace, good living condition, good health, good family, good environment and what others? All researchers from different disciplines are investigating to solve this economic problem and Most of the researchers agreed that happiness is the common aim of everyone in the world. The paper entitled “Does Economic Freedom Create Happiness or Inequality?” is estimated the effect of economic freedom on happiness by using other control variables like Gross Domestic Product growth, per capita and inequality. The paper analyzed the panel data covering 120 countries from 2008 to 2016. The fixed and random effect, the Generalized Least Squares, First in Difference and Linear Dynamic Panel Data/generalized method of moments estimation method are applied as the econometric strategies in this paper. The results found that the statistically significant and strong linear positive association between economic freedom and happiness in overall sampled countries and also found the positive linear association between income with happiness and a negative association between economic freedom and inequality and inequality and happiness.

Application of Vector Measure Construction Methods to Estimate Quality of Institutions: Nations in Transition

“…The "inclusive" institutions are considered to be the one of fundamental growth factors (deep roots of growth) that directly or indirectly influence two other determinants (geography and openness of economy) (Acemoglu et al, 2001;2002;Rodrik, 2003;Bloch and Tang, 2004;Rodrik, et al, 2004;Owen and Weatherston, 2007;Economides and Egger, 2009;Besley and Persson, 2011;Acemoglu and Robinson, 2012). And as stated in the latest literature, formal and informal institutions are considered as an important determinant of growth, quality of live and subjective well-being (Bjørnskov, Dreher, and Fischer, 2010;Helliwell, Huang, and Wang, 2014;Nikolova, 2015;Graafland and Lous, 2018;Graafland, 2020;Roka, 2020).…”