In this study, we examine the nexus between happiness and income through the Kuznets curve for Japan. We use gross domestic product per capita (GDPPC), GDPPC², and the unemployment rate as the explanatory variables for the happiness index. Using the annual data between 1970-2013, we conclude that there is a long-run relationship among the variables using the ARDL cointegration test. Besides, we estimate the short-run and long-run coefficients and find that the Happiness Kuznets curve is valid in both the short and long term. Considering the turning points, it is possible to state that happiness will increase until the GDPPC becomes $43029.57 in the short term and $ 44994.06 in the long term, and then it will decrease. On the other hand, it was concluded that unemployment does not have an impact on happiness in the short term, but it decreases happiness in the long term.
Key words: Happiness, Kuznets Curve, Income, Cointegration Test, Japan. Jel Codes: E01, C32, I31. Article Language: EnglishTurkish
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