How Happiness is Made : Determining How Economic Policy and Cultural Standards Predict Happiness

Abstract

The analysis of happiness and how it can be predicted by economic and social factors may allow policy makers to make informed and data-driven decisions in the future. In order to determine whether or not these factors can be optimized to maximize happiness in a society, we have utilized data-analysis and machine learning techniques to examine their usefulness as a predictive force. We found that a predictive model using the level of inequality, tax rates, and social inclusiveness of a country can account for a large portion of the variance in its population’s happiness. While further analysis is necessary to prove causation, these results show a promising link between economic policy, social conditions, and happiness.