2 The Economics of Happiness Abstract The following research paper briefly includes the economics of happiness and answers the research questions about how to achieve happiness and bring prosperity in the overall economics of the nation. Some academic articles are also used for the detailed study of this research. View of economists is also stated in the body paragraphs of this report. Additionally, change theory is also discussed and a link with the happiness is made in the body paragraphs of this report. Introduction It is the feeling of bliss and hopefulness which is perceived by the optimistic individuals in their life. In Economics, it is the relationship between the individual satisfaction and the economic issues like wealth and other employment matters (Bruni, 2005). Happiness can be used as a synonym to well-being in economics. Happiness cannot be measured in the units; there are no units to measure the exact quantity of happiness. The determinants of happiness can be easily judged in the light of economics of happiness. The factors that relate to the happiness in economics term are described in the below mentioned paragraphs. (Bruni, 2007). Happiness is directly linked with the emotional well-being of a person. People’s judgment can be used in the route to attain happiness and their attitudes can be modified accordingly for a joyful life. (Knight & Gunatilaka, 2011) Literature review This theory states the factors that attempts to increase or decrease the human well-being and satisfaction of life. These factors include adaptation, money, society, social relationships and the culture (Frey & Stutzer, 2018). The primary source of this report states that the potential of adaptation in the behavior of a human being leads towards the quality of life and a good standard of life. Money can buy anything that a human wish for (Knight & Gunatilaka, 2011). To be self-sufficient in money terms is a blessing and keeps a person hopeful and pleasure (Anielski, 2009). Prosperity can be measured in money terms and the outcome can be analyzed by the economists and draw a true picture of the overall economy. Economics of Happiness Money can buy the basic necessities of a human being like food and shelter requirements and thus if their requirements are fulfilled properly, they will eventually be contended. (Powdthavee, 2007). Job satisfaction is another factor of happiness that brings significant difference in the level of happiness. The job security confirms a peace of mind that derives the attainment of the pleasure in life (Di Tella & MacCulloch, 2006). Relationship in a society can be standardized and as a result quality of life is maintained and upgraded. If a person is happily related to the loved ones then he should be living a perfect life without any worries (George, 2012). Culture of a place highly impact the happiness level, if a person is comfortable with his surroundings then he does his best in all the dealings of life. If there i ...

1. 2
The Economics of Happiness
Abstract
The following research paper briefly includes the
economics of happiness and answers the research questions
about how to achieve happiness and bring prosperity in the
overall economics of the nation. Some academic articles are
also used for the detailed study of this research. View of
economists is also stated in the body paragraphs of this report.
Additionally, change theory is also discussed and a link with the
happiness is made in the body paragraphs of this report.
Introduction
It is the feeling of bliss and hopefulness which is perceived by
the optimistic individuals in their life. In Economics, it is the
relationship between the individual satisfaction and the
economic issues like wealth and other employment matters
(Bruni, 2005). Happiness can be used as a synonym to well-
being in economics. Happiness cannot be measured in the units;
there are no units to measure the exact quantity of happiness.
The determinants of happiness can be easily judged in the light
of economics of happiness. The factors that relate to the
happiness in economics term are described in the below
mentioned paragraphs. (Bruni, 2007). Happiness is directly
linked with the emotional well-being of a person. People’s
judgment can be used in the route to attain happiness and their
attitudes can be modified accordingly for a joyful life. (Knight
& Gunatilaka, 2011)

2. Literature review
This theory states the factors that attempts to increase or
decrease the human well-being and satisfaction of life. These
factors include adaptation, money, society, social relationships
and the culture (Frey & Stutzer, 2018). The primary source of
this report states that the potential of adaptation in the behavior
of a human being leads towards the quality of life and a good
standard of life. Money can buy anything that a human wish for
(Knight & Gunatilaka, 2011). To be self-sufficient in money
terms is a blessing and keeps a person hopeful and pleasure
(Anielski, 2009). Prosperity can be measured in money terms
and the outcome can be analyzed by the economists and draw a
true picture of the overall economy.
Economics of Happiness
Money can buy the basic necessities of a human being like food
and shelter requirements and thus if their requirements are
fulfilled properly, they will eventually be contended.
(Powdthavee, 2007). Job satisfaction is another factor of
happiness that brings significant difference in the level of
happiness. The job security confirms a peace of mind that
derives the attainment of the pleasure in life (Di Tella &
MacCulloch, 2006). Relationship in a society can be
standardized and as a result quality of life is maintained and
upgraded. If a person is happily related to the loved ones then
he should be living a perfect life without any worries (George,
2012). Culture of a place highly impact the happiness level, if a
person is comfortable with his surroundings then he does his
best in all the dealings of life. If there is a variation in the
expected environment then this may cause to dispute or
conflicting situation that arise cultural conflicts. (Stutzer &
Frey,2012)
Economists’ View on Happiness
Economists in their theories encourage the human being to
put efforts to become happy and prosperous. They believe that
the emerging disciplines promote the well-being of a human
being (Frey & Stutzer, 2018). When the work is done with

3. efficiency and effectiveness, the doer of the work becomes
happy and prosperous with it that eventually increases the
morale of the worker. This confidence building leads to a
practical world where each and every person looks forward to
his professional development. (Anielski, 2009)
Happiness is not merely a word that is used in the normal life
rather it is a need that is seek by all the persons in their life (Di
Tella & MacCulloch, 2006). The sense of contentment when a
thing is achieved can be expresses in different ways. The
expression includes the verbal, non-verbal, gestures or by some
other token of joy. This is a goal for everyone and economists
are working on it to get it on a higher scale. The role of
happiness cannot be denied in attaining the higher GDPs and
increasing the wealth income of the country. Happiness
becomes a motivation for getting success in life. (George, 2012)
Change Theory
Change is necessary to bring happiness in the society.
Economics focused on the theory that describes the resistance to
change. The factors that make a person resistant to change are
the poor communication skills, bad timing of introducing the
change, job loss and lack of trust (Di Tella & MacCulloch,
2006). Communication skills are needed to convey the feelings
and if these are not properly conveyed then meaning of entire
life go into waste. Introduction of change at the right time is the
key to success (Anielski, 2009). The right time is said when
people are willing to adopt it with open heart without any
hurdles. Some old people are reluctant to change because they
think that it will take their job if they switch into the new things
and they will forget their prior working style. If there is a lack
of trust among the people then they must be reluctant to change,
so for getting positive results, there is a need to build trust
among the people. (Frey & Stutzer, 2018)
Conclusion
I agree with the concept of the economists to achieve
happiness by all possible ways that a person can do for himself.
But the drawback is that we cannot measure happiness and

4. cannot decide who is happier. The reasons to live a happy life
can be extracted by the lifestyle of various successful
personalities. Happiness is a subjective term and hence cannot
be taken in a single meaning. There are factors which lead to a
happy life and these factors are studied in depth in the above-
mentioned paragraphs. Economists are trying to link the matter
of happiness with the growing unemployment rate as they
believe if a person is getting ample amount of money from his
services, he remains satisfied. It is concluded that satisfaction
can be directly linked to the joy and happiness in life. If the
basic necessities are fulfilled then the society is happier and can
fight the biggest wars with respect to this.
Reference
Knight, J., & Gunatilaka, R. (2011). Does economic growth
raise happiness in China? Oxford Development Studies, 39(01),
1-24.
George, M. (2012). Happiness Economics from 35,000 Feet.
Journal of Economic Surveys, (26), 4.
Bruni, L. (2005). Economics and happiness: Framing the
analysis. Springer Nature.
Bruni, L. (2007). Handbook on the Economics of Happiness.
Edward Elgar Publishing.
Frey, B. S., & Stutzer, A. (2018). Economics of happiness.
Springer International Publishing.
Anielski, M. (2009). The economics of happiness: Building
genuine wealth. New Society Publishers.
Powdthavee, N. (2007). Economics of happiness: a review of
Literature and applications. SOUTHEAST ASIAN JOURNAL
OF ECONOMICS, 19(1), 51-73.
Di Tella, R., & MacCulloch, R. (2006). Some uses of happiness
data in economics. Journal of economic perspectives, 20(1), 25-
46.
Stutzer, A., & Frey, B. S. (2012). Recent developments in the
economics of happiness: A selective overview. Recent

5. Developments in the Economics of Happiness: A Selective
Overview. IZA Discussion Paper, (7078).