Nghiên cứu về tác động của chi tiêu chính phủ đến hạnh phúc của con người - Luận văn Thạc sĩ tại ...

Luận văn thạc sĩ nghiên cứu government expenditure and happiness direct and indirect effects, khảo sát thực trạng, phân tích nguyên nhân, đề xuất giải pháp cải thiện thực tiễn.

Trường đại học

University of Economics

Chuyên ngành

Development Economics

Người đăng

Ẩn danh

Thể loại

Thesis

2017

67
0
0

Phí lưu trữ

30 Point

Mục lục chi tiết

List of Tables

List of Appendices

List of Acronyms

Abstract

1. Chapter 1: Introduction

1.1. Background

1.2. Research questions and contribution

1.3. Scopes and limitations of the study

1.4. Data and methodology

1.5. Organization of the research paper

2. Chapter 2: Literature Review

2.1. Key concepts

2.2. Government expenditure and happiness

2.3. Social development and happiness

3. Chapter 3: Data and Methodology

3.1. Data and variable explanation

3.2. Methodology

4. Chapter 4: Results and Analysis

4.1. Findings and interpretation of the basic panel regressions

4.2. Findings and interpretation of the transmission channels model

5. Chapter 5: Conclusion

References

Appendices

Trích đoạn nội dung tài liệu

UNIVERSITY OF ECONOMICS ERASMUS UNVERSITY ROTTERDAM HO CHI MINH CITY INSTITUTE OF SOCIAL STUDIES VIETNAM THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS GOVERNMENT EXPENDITURE AND HAPPINESS: DIRECT AND INDIRECT EFFECTS BY TUNG K. DAO MASTER OF ARTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY, NOVEMBER 2017 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS GOVERNMENT EXPENDITURE AND HAPPINESS: DIRECT AND INDIRECT EFFECTS A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By TUNG K. DAO Academic Supervisor: Dr. Elissaios Papyrakis Dr. Pham Khanh Nam HO CHI MINH CITY, NOVEMBER 2017 TIEU LUAN MOI download : skknchat@gmail.com Contents List of Tables v List of Appendices vi List of Acronyms vi Abstract vii Chapter 1: Introduction 01 1.2 Research questions and contribution 02 1.3 Scopes and limitations of the study 02 1.4 Data and methodology 03 1.5 Organization of the research paper 03 Chapter 2: Review of Literature 04 2.2 Government expenditure and happiness 05 2.3 Social development and happiness 06 2.4 Other determinants of happiness 07 Chapter 3: Data and Methodology 11 3.1 Data and variable explanation 12 3.2 Methodology 17 iii TIEU LUAN MOI download : skknchat@gmail.com Chapter 4: Results and Analysis 19 4.1 Findings and interpretation of the basic panel regressions 19 4.2 Findings and interpretation of the transmission channels model 38 Chapter 5: Conclusion 45 References 47 Appendices 51 iv TIEU LUAN MOI download : skknchat@gmail.com List of Tables Table 3.1 List of variables with description 13 Table 3.2 Descriptive statistics 15 Table 3.3 Correlations between explanatory variables 16 Table 4.1 Direct effect regressions – Pooled OLS model 20 Table 4.2 Direct effect regressions – Fixed Effects model 22 Table 4.3 Direct effect regressions – Random Effects model 24 Table 4.4 Happiness regressions with HDI – Fixed Effects model 29 Table 4.5 Happiness regressions with HDI – Random Effects model 31 Table 4.6 Changes in happiness regressions – Fixed Effects model 33 Table 4.7 Changes in happiness regressions – Random Effects model 35 Table 4.8 Change in happiness (2009-2012) regressions – OLS 40 Table 4.9 Indirect transmission channels 42 Table 4.10 Indirect effect regression 43 Table 4.11 Relative importance of transmission channels 44 v TIEU LUAN MOI download : skknchat@gmail.com List of Appendices Appendix 1 Breusch-Pagan Lagrange multiplier test result 51 Hausman test result (Happiness regressions) 52 Appendix 2 Hausman test result (Changes in Happiness regressions) 53 Appendix 3 Indirect transmission channels with full large sample 54 Appendix 4 List of countries (full sample) 55 Appendix 5 List of countries (sub-sample used in Section 4.2) 58 List of Acronyms GDP : Gross Domestic Product ILO : International Labor Organization OECD : Organization for Economic Co-operation and Development OLS : Ordinary Least Squares The US : The United States of America vi TIEU LUAN MOI download : skknchat@gmail.com Abstract This research paper aims to investigate the importance and significance of government size on happiness. Utilizing a relative large panel sample, which covers 183 countries in a period from 1990 to 2016, the research objective is first to study the direct effect of government expenditure on happiness through basic panel analyses. After understanding the importance and significance of government expenditure, this paper then tries to determine the indirect effects of government expenditure on happiness through the transmission channels include income, inequality, unemployment rate, inflation rate, economic growth and social development. In order to obtain the research objectives, this paper applies not only panel data regression methodologies, such as Pooled OLS, Fixed Effects, Random Effects Models, but also cross-sectional analysis; and finds that government expenditure only affects happiness in short term and that the importance and direction of the transmission channels are heterogeneous. Relevance to Development Studies This research is expected to contribute to the existing literature the evidence of the existence of a linkage between government size and happiness not only in long term but also in short term. In addition, the results of this study would shed light on the effects of government expenditure on happiness, both in direct and indirect ways. Besides, when performing analyses on the relationship between government expenditure and happiness, this research also provide strong evidences of other drivers of happiness as well as the relative importance of the transmission channels, which could be helpful and useful for further development studies. Keywords Government expenditure, public spending, happiness, subjective well-being, transmission channels. vii TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1 INTRODUCTION 1.1 Background “Economists are trained to infer preferences from observed choices; that is, economists typically watch what people do, rather than listening to what people say. Happiness research departs from this tradition” (Di Tella & MacCulloch, 2006, p. For a long time, economic researches prefer objective measures of human well-being, such as income per capita, when studying different models of development. However, Easterlin (1974) points out that economic growth does not always lead to a raise in life satisfaction, the happiness as a subjective approach has been introduced in many economic research to gain more precise knowledge of human well-being. By identifying the determinants of happiness and understanding the dependence of happiness on macroeconomic variables, especially government expenditure, governments could improve their economic and social policies. The size and volatility of government spending are believed to have significant effects on the social well-being. Higher public spending in fields like education, health, and development could result in higher living standard which means higher happiness level. Lower government spending could imply that the government is applying a lower tax rate, which might boost the economic growth that can also lead to an increasing the living standard in the country. The effect of government quality on happiness is positive and supported by many empirical researches (Blanchflower & Oswald, 2008; Ott, 2015; Radcliff, 2013). However, divergent impact of government expenditure on welfare is found in different studies using different methods and datasets. While Bjørnskov et al. (2007) emphasize the drawback of government consumption; Ram (2009) finds no evidence of a negative impact of government expenditure on happiness. On the other hand, Perovic and Golem (2010) suggest that public spending and happiness have a non-linear relationship. Considering the importance of happiness in the economic and social development, many researchers have been trying to identify significant factors affecting the welfare. Previous studies have taken into account numerous factors, such as climate and environment (Rehdanz & Maddison, 2005; Welsch, 2006); culture, gender, and religion (Dorn et al., 2007; Mookerjee & Beron, 1 TIEU LUAN MOI download : skknchat@gmail.com 2005); as well as macroeconomic components, including governance factors (Di Tella et al. It is widely agreed that government has significant impacts on happiness. However, there are two main conflicting arguments on the consequences of government expenditure.2 Research questions and contribution This research paper aims to investigate the importance and significance of government size on happiness. Given the vast literature on happiness, there are very limited studies available on various explanatory variables as transmission mechanisms of government expenditure. The research objective is first to study the direct effect of government expenditure on happiness through basic panel analyses. After understanding the importance and significance of government expenditure, this paper then tries to determine the indirect effects of government expenditure on happiness through the transmission channels include income, inequality, unemployment rate, inflation rate, economic growth and social development. Therefore, to achieve these objectives, this research attempts to address following questions: i. Does government expenditure have direct effect on the level of happiness? ii. Does government expenditure have indirect effects on the level of happiness through the transmission channels? By answering the above questions, this research is expected to contribute to the existing literature the evidence of the existence of a linkage between government size and happiness not only in long term but also in short term. In addition, the results of this study would shed light on the effects of government expenditure on happiness, both in direct and indirect ways. Moreover, this research introduces the social development dimensions, which are hardly seen in previous happiness studies, along with other macroeconomic factors. Besides, when performing analyses on the relationship between government expenditure and happiness, this research also provide strong evidences of other drivers of happiness as well as the relative importance of the transmission channels, which could be helpful and useful for further development research.3 Scopes and limitations of the study This research covers 183 countries (see Appendix 4 for list of countries), in a period from 1990 to 2016 (the exact time of available data for 2 TIEU LUAN MOI download : skknchat@gmail.com happiness includes 1990, 1995, 2000, 2006, 2009, 2012, and 2016). Such sample could be considered relatively large and inclusive. However the availability of data is not continuous throughout the period, especially that of happiness, social development data. Furthermore, the analysis would have been much deeper, had the different components of public expenditure, e., education expenditure, health expenditure, social expenditure, be analyzed.4 Data and methodology Data in this research is obtained from various sources. To acquire happiness at country level, this research employs the “life satisfaction” data from the Gallup World Poll. The data for government expenditure and several macroeconomic happiness determinants namely income, inequality, unemployment rate, inflation rate, and economic growth are acquired from the World Bank’s World Development Indicators dataset. In addition, the social development data is obtained from the Indices of Social Development database. Analysis in this research paper follows the methodology of Papyrakis and Gerlagh (2004), who study the transmission channels through which natural resource abundance indirectly affects economic growth1. In order to analyze the dependence of happiness on government expenditure, this study conducts regression analysis through the Pooled OLS, Fixed Effect, and Random Effect Models. Then model specification tests are employed to identify the most appropriate model for further analyses. Next, to investigate the magnitude and significance of the transmission channels, I estimate the effects of government expenditure on income, inequality, unemployment rate, inflation rate, economic growth and social development to capture their indirect effects on happiness.5 Organization of the research paper The remaining of this paper is structured as follows. Chapter 2 provides the literature review on happiness in the relations with government expenditure and other explanatory variables. Chapter 3 explains the data and the econometric methodology employed in addressing the research questions. Chapter 4 analyzes the regression results to understand the direct and indirect effects of government expenditure on happiness. Chapter 5 concludes the research paper. 1 I also review the methodology of Pellegrini and Gerlagh (2004) who study the transmission channels through which corruption affects economic growth. 3 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 2 LITERATURE REVIEW 2.1 Key concepts Frey (2008) argues that happiness is considered as individuals’ “ultimate goal in life” and is not stable. Happiness is subjected to change over time and is affected by various actions and factors, both material and non- material. Many economists perceive happiness as objective well-being which can be increased through material factors, such as better economic conditions, better healthcare and education. In this research, happiness is referred to as subjective well-being, of which data can be collected by asking the follow question from the Gallup World Poll: “All things considered, how satisfied are you with your life as a whole these days?” Much of the happiness economics literature has a tendency to use measures of “life satisfaction” when carrying out the analyses of happiness. This is based on the argument that the measures of “life satisfaction” and the measures of “happiness” are, to some extent, similar and uniform; and that “these alternative measures of well-being are highly correlated and have similar covariates” (Stevenson & Wolfers, 2008, p. However, there’s still been criticism on the measurements of happiness saying that happiness is more about attitudinal things in the sense of feelings while life satisfaction is more into evaluating the conditions of life.

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