Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324473 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
FMM Working Paper No. 108
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
This paper investigates the impact of different varieties of capitalism (VoC) on societal happiness. It begins with a critique of Neoclassical welfare economics which emphasizes Pareto optimality, and it argues for focusing on reported societal happiness. The paper identifies five VoC. Using a sample of twenty-six high-income countries drawn from the 2020 World Happiness Report, the paper shows societal happiness is systematically impacted by variety of capitalism type. Social Democratic economies report higher happiness levels. The US benefits from its standing as global economic hegemon, but it still reports lower happiness than Liberal and Social Democratic economies owing to its adverse societal relations. The public policy implication is the Social Democratic variety of capitalism produces greater societal happiness. More generally, happiness analysis can fill a gap in VoC theory and strengthen it by providing an operational form of welfare analysis. Making happiness the focus of attention will also likely change how economists interpret economies, which stands to change both economic theory and policy.
Subjects: 
Macroeconomic Policy Institute
IMK
Forum for Macroeconomic and Macroeconomic Policies
FMM
happiness
varieties of capitalism
US hegemon
liberal
social democratic
East Asian
Mediterranean Corporatist
JEL: 
D6
P0
P1
P5
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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