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1、1DOESHIGHERINCOMECONTRIBUTE TOHAPPINESS? ANEXPLORATORYSTUDYPresentationatDRPUConference IndabaHotel Johannesburg 27-29October2010DarmaMahadeaUniversityofKwazulu-NatalE-mail:Mahadead@ukzn.ac.za2Happiness(H)Pursuitofindividualhappiness&abetterlifeisagloba
2、lobjective.Happinessliesinsatisfactionofphysicalandmaterialdesires.“Inmyview,theprimepurposeofsocialscienceshouldbetodiscoverwhathelpsandwhathindershappiness.”(R.Layard)Buthan:GNHinsteadofGNYM.Ramphele:GNHN.Sarkozy:GNH3RisingY:reducingpovertyandimprovin
3、glifesatisfaction.Greaterhappinessmayexpandanindividual’scapacitytofunction.Goalofdevelopment:GDP,expandhumancapabilitiesandhappiness(A.Sen)4Classical&ModernEconomists’viewsMorewealthisjustameansofbeinghappy(Smith,1759:166).‘toincreasethewealthofastatet
4、endalso,generallyspeaking,toincreasehappiness’(Malthus,1798:303).Bentham:associateshappinesswithutilityandmaximizationofthepursuitofpleasureandminimizationofpain.Ng(2006):happinessas‘welfare’5Oswald(1997):happinessmeans‘pleasure’or‘satisfaction’.Layard(
5、2005):happinessissynonymouswithsubjectivewell-being(SWB).Easterlin(2001:465):“Iusethetermshappiness,subjectivewell-being,satisfaction,utility,welfareinterchangeably.”DanielKahneman,NobelPrizewinnerforEconomicsin2002,treatshappinessasasubjectiveissuethat
6、ismeasurablethroughsurveys6YandHappiness(H)Whatdetermineshappiness?YHincreaseswithincome.Entirenationscanbehappierwitheconomicgrowthexpansions(VeenhovenandHagerty,2006:21).C:f(Y)MoreHresultsfrommoreC.+RelEG,Y,andhappiness‘Moreisbetter’.AsGDP/capitaincre
7、ases,Crises,sodoesaggregatewell-being.7Atapointoftime:YesSeveralstudiesshow:onaverage,individualsinwealthiercountriesarehappierthanthoseinpoorercountries.Yes,+relationshipbetweenHandYataparticularpointintimeandinagivencountry(FreyandStutzer,2002:10).Ove
8、rtime?8Butindevelopedandrichercountries,higherYdoesnotseemto‘buy’higherHovertime,onceathresholdYlevelisreached.InUSA(Fig1):nosignificantincreaseinHperiod1945-2000,thoughrealincomeperheadincreasedconsiderably.9IncreaseinY/head,mor
