A Theoretical Review Of Researches On Relationship Between Income And Happiness

This thesis will try to review the literatures about income-happiness relationship, and also examine and comb the empirical and theoretical researches of income-happiness relationship. After that, the thesis introduces mathematical models established on the basis of the above theories. At last, policy implications are expounded.First of all, this thesis introduces concepts of happiness and income in economic perspective, and then summarizes the current research results through making a general recall on income-happiness relationship. In the following part, the author finds that the existing literatures about income-happiness relationship can be complied into categories according to its subjects and fields, such as the relationship between income and happiness in a country; the relationship between domestic economic growth and happiness, the relationship between income and happiness for different countries; the relationship between income distribution and happiness in a country. After reviewing the above aspects of empirical research in literatures, the author introduces four theories (the Personality theory, Need theory, Comparison theory, and Focus illusion theory) as the basis for income-happiness relationship. In succession the thesis describes in details and makes some analysis and comparison on several existing income-happiness relationship theories, and finds that comparison theory has a stronger interpretation to income- happiness paradox. Then the author makes some analysis and comparison of mathematical models based on these theories, and finds that the income threshold stressed in the "threshold" model could bring forward new inspiration to the formulation of public policy. Finally, the author points out the policy implications for government after making some collation and comparison on the policy implications based on kinds of empirical and theoretical researches.