A happiness index of human development

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

Nowadays many social scientists defend the advantages to define a measure of well being able to complement the GDP per capita. This work project proposes a new index of human development: the happiness index. Many studies have been undertaken in order to determine the best measurement of happiness. Happiness is much more than just feeling good, it is also living and doing well. Thus, in order to create a measure of happiness, it is required to evaluate all factors that intervene and, on the other hand, to consider the best practices, combining growth, environmental sustainability and efficiency. The estimation was made based on data for 83 countries, and then applied to 130 countries in the period 1997-2005. Countries with the highest GDP per capita or Human Development Index are not the ones with the higher happiness index.