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Author(s): Sequeira, T. N.
Minas, T.
Ferreira-Lopes, A.
Santos, M.
Date: 2017
Title: Do large governments decrease happiness? New evidence of a negative effect in Europe
Volume: 3
Number: 3
Pages: 193 - 240
ISSN: 2049-2790
DOI (Digital Object Identifier): 10.1504/IJHD.2017.084070
Keywords: Happiness
Government size
Fiscal deficits
Government quality
Public debt
Abstract: Until now little evidence has been found about the relationship between governments and happiness, but when cited, it has suggested a positive influence. Using micro-data from the last three waves of the European Quality of Life Survey and several measures for the weight of the government, such as structural government consumption, structural balance, and public debt, we show that government consumption and the other measures of government imbalances significantly decrease happiness in European countries. Additionally, we present robust evidence of a positive relationship between the quality of government and happiness. This evidence may lead politicians to reject the idea that bigger Governments lead to greater satisfaction. This result is consistent with people valuing (negatively) expectations for future tax increases, austerity, and possible corruption-related events.
Peerreviewed: yes
Access type: Open Access
Appears in Collections:BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica

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