Scientific journal paper
Do large governments decrease happiness? New evidence of a negative effect in Europe
Tiago Miguel Guterres Neves Sequeira (Sequeira, T. N.); Tiago Alexandre Silva Minas (Minas, T.); Alexandra Ferreira-Lopes (Ferreira-Lopes, A.); Marcelo Santos (Santos, M.);
Journal Title
International Journal of Happiness and Development
Year (definitive publication)
2017
Language
English
Country
Switzerland
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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.
Acknowledgements
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Keywords
Happiness,Government size,Fiscal deficits,Government quality,Public debt,Europe
  • Economics and Business - Social Sciences
Funding Records
Funding Reference Funding Entity
POCI-01-0145-FEDER-007659 Fundação para a Ciência e a Tecnologia
UID/GES/00315/2013 Fundação para a Ciência e a Tecnologia
UID/ECO/04007/2013 Fundação para a Ciência e a Tecnologia

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