Affiliation:
1. İSTANBUL GELİŞİM ÜNİVERSİTESİ
Abstract
Understanding the relationship between societal consumption desires and happiness levels contributes
to the development of economic policies aimed at enhancing welfare. Therefore, this study, which
investigates the relationship between consumption and happiness, consists of two stages. In the first
stage, the happiness of economic units is measured by the Happiness Index, and consumption data is
represented by the ratio of household disposable income to expenditures as provided by the OECD.
Granger Causality Analysis was applied to data from 30 OECD countries, including Turkey, with continuous
data availability for the period 2018-2021. The findings indicate no significant causality relationship. In the
second stage, the relationship between consumption desires and happiness of economic units in Turkey
was investigated using simple regression analysis. The results suggest that a 1% increase in consumption
leads to an approximate 0,00287 unit decrease in happiness, indicating that an increase in the propensity
to consume is associated with a decline in happiness levels. Consequently, this study finds no causality
between happiness and consumption in OECD countries, while in Turkey, societal consumption desires
negatively impact happiness. The findings are expected to contribute depth to the existing literature.
Publisher
Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency of Turkey
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