How to Optimize the Relationship Between Public Spending and Happiness

Renaud Gaucher

doi:10.1007/s42413-021-00142-6

Renaud Gaucher

Open Access

https://doi.org/10.1007/s42413-021-00142-6

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Abstract

Happiness and efficient public spending are considered to be two desirable goals. In this paper, I consider happiness in the sense of how much one likes the life one leads (Veenhoven, 1984), and emphasize negative utilitarianism (Popper, 1952) as the best approach for promoting happiness in public policies. An ethical framework about public policies implemented to improve social conditions for happiness is suggested. I give a definition of the term optimization and propose two methods to optimize the relationship between public spending and social conditions for happiness. I briefly introduce a bookkeeping method, and I then present the bases of an econometric method in which quantile regression is described as the best tool within the negative utilitarianist approach, because quantile regression makes possible to know which independent variables influence most the degree of happiness of the least happy/ the saddest. The bookkeeping and the econometric methods presented are useful for any local, regional, national or supranational authority. These methods may also be useful for optimizing the relationship between natural resources consumption and social conditions for happiness. The paper is a conceptual paper.

Highlights

Happiness and efficient public spending are two desirable goals
If the authority is divided into more than thirty districts and financial data are available for each district, it is possible to optimize the relationship between public spending and social conditions for happiness study using econometric tools
I consider that people in our world could be much happier than they are and that public policies based on the advancements being made in the science of happiness are a leading means to fulfil this goal

Summary

Introduction

Happiness and efficient public spending are two desirable goals. Happiness is important for at least four reasons. It is possible to finance public policies that help people develop happiness-relevant activities and practices, for example by implementing education programs that help young people to build psychological resources they can use to build a happier life, or facilitating access to psychological health professionals for people who need help, and even for people who just want to develop the positive dimension of their psychological health further. I will present the useful data to collect for the econometric approach, explain why quantile regression is the best tool in a negative utilitarianist and econometric approach, and provide an econometric model to help optimize the relationship between public spending and social conditions for happiness. Know if some categories of people are least happy/sadder than others control the representativeness of a study regarding each feature, selection bias being often a major limitation of studies study a specific population, for example the homeless or the unemployed

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