Economic And Quantitative Analysis Report

Running head: ECONOMIC AND QUANTITATIVE ANALYSIS
Economic And Quantitative Analysis
Name of the Student
Name of the University
Author note

ECONOMIC AND QUANTITATIVE ANALYSIS1
Table of Contents
Purpose............................................................................................................................................2
Background......................................................................................................................................2
Method.............................................................................................................................................2
Result...............................................................................................................................................3
Discussion........................................................................................................................................7
Recommendation.............................................................................................................................7
References list..................................................................................................................................9

ECONOMIC AND QUANTITATIVE ANALYSIS2
Purpose
The report conducts an economic study to relate average life satisfaction and GDP per
capita using statistical tool of linear regression.
Background
The determinants of level of life satisfaction still remain unclear and is a subject of
intense debate among economists, social scientists and policy makers. The reliance on only
economic factors like GDP or income in determining happiness does not always give satisfactory
result and indicate actual picture of happiness. Economic data on life satisfaction are highly
questioned. On famous paper in 1974 showed increase un GDP does not necessarily correlated
with happiness (Strulik 2015). This paradox encouraged more researchers to study well-being of
a nation. GDP though is not the only determinant it still however remains an important
determinant of life satisfaction. Some previous researchers were of the view that GDP influences
life satisfaction within a given range of income. As per Stevenson and Wolfers, the positive
influence of GDP on wealth is valid for a per capita GDP of below $15,000 (Stevenson and
Wolfers 2013). Beyond this level the impact of GDP on life satisfaction flattens. Another study
made by Deaton (2008) using the regression analysis showed a significant positive relation
between life satisfaction of a country and growth rate of GDP. In view of the past studies, the
current paper conducts a separate research scrutinize the proposed relation.
Method
The paper uses OECD’s statistical data on average life satisfaction scores and annual per
capita GDP for scrutinizing the relation between two indicators. Sample data are collected across
35 countries. The sample data set is then evaluated using statistical techniques of quantitative