Money and happiness

The Economist recently published a nice graph comparing countries by placing log GDP per capita (in PPP terms) on one axis and average life satisfaction on the other. (h/t Art Robson)  It appears that the data is from Angus Deaton at Princeton, who has worked a lot on this issue from the economics perspective. This is a topic I’m particularly interested in and one which will hopefully get a longer discussion in a future post (perhaps on my own blog… one day soon…).

In the meantime, if you’re interested, you should check out the insta-classic paper by Stevenson & Wolfers (at Wharton). I’m afraid it’s rather long, but don’t miss the invited comments by others appended to the end. Suffice to say that I think they have added greatly to the debate, but I disagree with their interpretation of the numbers.