Economic And Quantitative Analysis 2022

Running head: ECONOMICS AND QUANTITATIVE ANALYSIS
Economics and Quantitative Analysis
Name of the Student
Name of the University
Student ID

ECONOMICS AND QUANTITATIVE ANALYSIS1
Table of Contents
1.Purpose.........................................................................................................................................2
2.Background...................................................................................................................................2
3.Method..........................................................................................................................................2
4.Result............................................................................................................................................3
5. Discussion....................................................................................................................................7
6. Recommendation.........................................................................................................................8
Reference list...................................................................................................................................9

ECONOMICS AND QUANTITATIVE ANALYSIS2
1.Purpose
The report intends to prepare a short report with the objective of examining statistical
association between average life satisfaction and GDP per capita using OECD cross sectional
data.
2.Background
Economic studies have put great importance on studying subjective well-being or
individual utility. The recent trend added to these studies is to examine the relation of subjective
well-being with economic factors with income being one primary economic factor influencing
life satisfaction. Economists engage in studying life satisfaction at least for three well-specified
reasons. First, state of happiness among people in the society determines the support to market
economy. Second, keeping people happy is one primary goal of policy makers. Third, it is
important to understand the relation between objective and subjective determinant of well-being.
One study as developed by Easterlin used the US data during post war period and confirmed that
happiness of people is independent of income (Strulik 2015). As a contradiction to this finding of
Easterning some other literatures concluded a positive association between income and life
satisfaction. Similar findings have also been confirmed by a panel study that considered data of
five households. Some other papers challenged the findings and suggests happiness varies with
income but only up to a certain limit (Stevenson and Wolfers 2013). Given the differences in
opinions among the economists and scientists related to connection between life satisfaction and
income researchers show continuous interest to explore the relation.
3.Method