Well being indicators, across countries comparison

With how many money you can buy happiness? What is the level of money important to our lives? R. Easterlin found no clear relationship between income and happiness (subjective sense of wellbeing) in cross-country comparisons. Easterlin also found self-reported measures of happiness declined in the U.S. between 1957 and 1970, despite overall increases in real income levels. Based on the data collected, an increase in income is not necessarily related to an associated increase in happiness. Recent studies suggest a more nuanced relationship between income and happiness. For instance, Halpen reports that both within and across nations, the relationship is curvilinear i.e. at lower levels of income increases in income are indeed likely to lead to increases in self-reported measures of happiness, while at higher levels of income, increases in income have considerably less impact on selfreported happiness. There are multiple other paradoxical issues involving the relationship between income and overall quality of life. For example, in Russia, although GDP per capita has risen over the period 2000 to 2013, life expectancy has concurrently declined, from 1998 to 2003. Meanwhile, in the United States, while overall GDP per capita rose over the period 1999 to 2008, median income has simultaneously fallen. Given these conflicting signals from various life satisfaction indicators, is it possible to determine an objective measure or a set of measures aside from GDP for policy-makers to best pursue? This is an important question to consider. For decades, policy-makers in most governments have nearly all focused exclusively on the pace of economic growth as shown by the growth of GNP (Gross National Product) and GDP (Gross Domestic Product). I seek to address the question of what kind of alternative index could more adequately measure national welfare. As D. Coyle points out, while we currently have no consistently-accepted alternative to GDP, it has become increasingly inadequate in accurately measuring national welfare As such it is important to find an acceptable and cogent alternative to GDP that can be used to assist with construction of appropriate and effective economic and social policies. I have researched existing literature and collected some indices proffered as alternatives to GDP in measuring national wealth or well-being. Below, i try to present the indices and examine their components and background. For illustrative purposes, with each index i construct cross-country comparisons for China, Hong Kong, Singapore, South Korea and Japan.