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Inflation, Income, and Happiness: Contrasting Low-Income Developing Countries and Advanced Economies

Year: 2025

Type: article

Abstract: This study explores the relationship between inflation, income, and happiness in low-income developing countries and advanced economies, as classified by the IMF. Using panel data from 66 countries (2012–2022) and random effects models, the results show a negative impact of inflation on happiness in low-income countries, while advanced economies exhibit a positive relationship, where inflation reflects economic vitality. Income per capita significantly drives happiness in low-income countries but moderates inflation's effects in advanced economies. These findings underscore the distinct macroeconomic influences on happiness across these two economic classifications.

Source: American Journal of Economic and Management Business (AJEMB)

DOI: 10.58631/ajemb.v4i1.180

Author: Muhammad Ichsan Fadillah

Institution: Poznań University of Life Sciences

Language: English

Topic: Psychological Well-being and Life Satisfaction

Subfield: Social Psychology

Field: Psychology

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth, Reduced inequalities

Open Access status: diamond

OpenAlex ID: W4409225397

FWCI:

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