Wellbeing measurements, Easterlin’s paradox and new growth models: A perspective through gross national happiness

a column by Sriram Balasubramanian for VOX: CEPR’s Policy Portal

There has been considerable criticism of the general reliance on GDP as an indicator of growth and development. One strand of criticism focuses on the inability of GDP to capture the subjective well-being or happiness of a populace.

This column examines new growth models, paying particular attention to Bhutan, which has pursued gross national happiness, rather than GDP, since the 1970s. It finds evidence of the Easterlin paradox in Bhutan, and draws out lessons for macroeconomic growth models.

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