Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?

The link between fiscal progressivity and subjective well-being at global level is an issue that has hardly been considered in the literature on the Economics of Happiness. Oishi et al. (2012) is almost the only work in this field, and they concluded that those countries which had more progressive i...

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Main Authors: Angela Ruíz Guillermo, Francisco Gómez García, Luis Palma Martos
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2023-03-01
Series:Scientific Annals of Economics and Business
Subjects:
Online Access:http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1809
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author Angela Ruíz Guillermo
Francisco Gómez García
Luis Palma Martos
author_facet Angela Ruíz Guillermo
Francisco Gómez García
Luis Palma Martos
author_sort Angela Ruíz Guillermo
collection DOAJ
description The link between fiscal progressivity and subjective well-being at global level is an issue that has hardly been considered in the literature on the Economics of Happiness. Oishi et al. (2012) is almost the only work in this field, and they concluded that those countries which had more progressive income tax systems were also happier. Our work use their definition of progressivity as the difference between the upper and lower marginal rate on income, in order to prove its relationship with subjective well-being (SWB), but we have observed that such indicator is not very significant for a sample of 111 countries. Besides, we conclude that the fact that a country's maximum income tax rate is high turns out to have a strong influence on the declared subjective well-being of its citizens. One possible explanation for it could be that they are countries with a high GDP per capita in which disposable income after taxes remains high. However, it must be taken into account that in our work we have managed to isolate the influences that the GDP per capita variable could have using the principal component analysis method.
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institution OA Journals
issn 2501-3165
language English
publishDate 2023-03-01
publisher Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
record_format Article
series Scientific Annals of Economics and Business
spelling doaj-art-700e48cb3caa434faaf611ddfbd284b92025-08-20T02:27:06ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652023-03-0170SI12113510.47743/saeb-2023-0011840Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?Angela Ruíz Guillermo0Francisco Gómez García1Luis Palma Martos2Universidad de SevillaUniversidad de SevillaUniversidad de SevillaThe link between fiscal progressivity and subjective well-being at global level is an issue that has hardly been considered in the literature on the Economics of Happiness. Oishi et al. (2012) is almost the only work in this field, and they concluded that those countries which had more progressive income tax systems were also happier. Our work use their definition of progressivity as the difference between the upper and lower marginal rate on income, in order to prove its relationship with subjective well-being (SWB), but we have observed that such indicator is not very significant for a sample of 111 countries. Besides, we conclude that the fact that a country's maximum income tax rate is high turns out to have a strong influence on the declared subjective well-being of its citizens. One possible explanation for it could be that they are countries with a high GDP per capita in which disposable income after taxes remains high. However, it must be taken into account that in our work we have managed to isolate the influences that the GDP per capita variable could have using the principal component analysis method.http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1809progressivitysubjective well-beingtaxationquality of lifehappiness.
spellingShingle Angela Ruíz Guillermo
Francisco Gómez García
Luis Palma Martos
Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
Scientific Annals of Economics and Business
progressivity
subjective well-being
taxation
quality of life
happiness.
title Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
title_full Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
title_fullStr Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
title_full_unstemmed Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
title_short Worldwide Fiscal Progressivity: What can we Learn from Subjective Wellbeing Economics?
title_sort worldwide fiscal progressivity what can we learn from subjective wellbeing economics
topic progressivity
subjective well-being
taxation
quality of life
happiness.
url http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1809
work_keys_str_mv AT angelaruizguillermo worldwidefiscalprogressivitywhatcanwelearnfromsubjectivewellbeingeconomics
AT franciscogomezgarcia worldwidefiscalprogressivitywhatcanwelearnfromsubjectivewellbeingeconomics
AT luispalmamartos worldwidefiscalprogressivitywhatcanwelearnfromsubjectivewellbeingeconomics