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Definition: Happiness Economics
Happiness Economics is a term which deals with the study of happiness, well being, quality and sustainability of life. There has been number of studies done to calculate the relative percentage of happiness around the world.
With people living in a globalised, connected, fast paced and ever changing world, it becomes crucial to measure how the changes are impacting the world in different nations. No country can remain in isolation with news being transferred at the click of a mouse. Hence the need to determine the happiness, quality and sustainability of life in a region becomes of interest. There are various studies which have been done around the world which determines the happiness levels of people in multiple nations.
The Happiness here includes a number of factors like health life expectancy, freedom to make choices, GDP per capital, generosity and corruption. Assigning a weight to each factor and giving it a score, creates a combined score for a country. With United Nations having also run millennium development goals (MDGs) and Sustainable Development Goals (SDGs), since past few decades, the happiness economics has enabled it to include the goals of increasing the quality of life for people around the world with a better focus. Earlier GDP per capita and GNP per capita used to be the only factors determining the happiness of people because they determine the output and income levels, but now including all the factors that lead to happiness are included and is a much better way. There can be multiple different factors which can be included in the study to deteremine the happiness levels.
For Example: World Happiness Report is an index published each year by United Nations Sustainable Development Solutions Network (UNSDSN). There are multiple parameters in the index based on which the countries have been ranked like GDP per Capita, life expectancy and freedom of choices etc. Considering each parameter there is a score given to each country. According to the latest ratings in 2016, Denmark ranks first, India ranks 118 and Burundi lies at the bottom of the index ranking 157.