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Testing The Easterlin Paradox: Results And Policy Implications, Edsel L. Beja Jr
Testing The Easterlin Paradox: Results And Policy Implications, Edsel L. Beja Jr
Economics Department Faculty Publications
The Easterlin Paradox is about the contradiction between an evidence of a short-run relationship between happiness and income growth and no evidence of a long-run relationship between happiness and income growth. The paper argues that there is confirmation of the Easterlin Paradox when the magnitude of the estimated long-run relationship is practically equal to zero notwithstanding its statistical significance. The findings of the paper support the Easterlin Paradox.