THE EFFECTS OF FISCAL POLICY PRACTICES ON HAPPINESS

The concept of happiness is subjective and varies across cultures. However, it is generally agreed that certain factors play a crucial role in determining an individual's well-being. Existing literature on happiness suggests that elements such as income, life expectancy, health, liberty, and moral values contribute to life satisfaction. People’s happiness at the micro level can be considered as an indicator of the well-being of the society and the quality of life at the macro level. In this respect, increasing the happiness level of the society is one of the main discussion areas of today's public policies. While the exact relationship between fiscal policy and happiness is complex, many studies show that well-designed fiscal policies can contribute to higher levels of happiness by reducing inequality, improving public services, and providing individuals with a sense of security and stability. In this respect study aims to analyze the impact of fiscal policy practices on happiness in 33 OECD countries, which exhibit varying levels of happiness, over the period from 2010 to 2023. According to the findings of the study that employed the Ordered Probit Model, fiscal policies are more likely to have a greater impact on countries with higher levels of happiness.