Abstract
GDP per capita often used in judgment about countries economic well-being, but any judgment based on it ignores some issues, therefore argues that a better index of economic well-being is IEWB (Index of Economic Well-being). Stevenson and Wolfers (2008), and Osberg and Sharpe (2001), mentioned that there is a positive relationship between GDP per capita and IEWB .in this paper we study a causal relationship between them; to this purpose we use the data of selected high income countries during 1980-2007.Finding shows that GDP is granger causal of IEWB except Norway that there aren’t any causal relationship between GDP and IEWB.
Highlights
The goal of economic policy is providing good situation for human life
Osberg (1985), introduce the Index of Economic Well-Being (IEWB), as a new measurement to judgment about economic situation
Studies about IEWB started with osberg (1985) who provides an Index of Economic well being for Canada
Summary
For years growth and GDP per capita was the measurement of good economic condition, but in recent years some have begun to argue against this idea They argue that GDP is a measure of the aggregate marketed income of a society, and primarily measures of adjusted average annual “income” flows. In several papers Richard Easterlin has examined the relationship between happiness and GDP both across countries and within individual countries through time In both types of analysis he finds little significant evidence of a linkage between aggregate income and average happiness (Stevenson and Wolfers, 2008). Osberg (1985), introduce the Index of Economic Well-Being (IEWB), as a new measurement to judgment about economic situation This index is consisting of four components that explained above.
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