There has been increasing interest in the direct measurement of the state of global well-being and cross-country comparison of well-being or happiness. Analyses of national well-being conventionally have focused on per capita income. Income and its growth are certainly an essential indicator of standard of living; but it is not the only thing that matters. There are noneconomic factors that contribute to well-being. Income may not be worth as much if one does not have the health and other capabilities to enjoy it. Satisfactory health together with other capabilities – freedom, the absence of conflicts, war, violence, and adequate social capital – can contribute to people’s subjective well-being or happiness. In this paper, we use the analytical framework of the economics of happiness to explore the relationship between happiness or subjective well-being and good health taking into consideration the role of social capital – trust and good governance.
Keywords: Emerging market economies, Health, Income, comparative perspectives, well-being
