Happy for How Long? How Social Capital and GDP relate to Happiness over Time
Please cite the paper as:
“Bartolini-Saracinno, (2013), Happy for How Long? How Social Capital and GDP relate to Happiness over Time, World Economics Association (WEA) Conferences, No. 1 2013, The political economy of economic metrics, 28th January to 14th March, 2013”
What predicts the evolution over time of subjective well-being? GDP or Social Capital? We correlate the trends of subjective well-being with the trends of Social Capital and/or GDP. We find that in the long and medium run Social Capital largely predicts the trends of subjective well-being. In the short-term this relationship weakens. GDP follows a reverse path: in the short run GDP is more positively correlated to well-being than in the medium-term, while in the long run this correlation vanishes, thus confirming the Easterlin paradox.