Effect of Economic Performance on Subjective Well-Being

The effect of Economics on the subjective well-being of people has been usually studied by treating country information in the same way as data from individuals. The objective of this paper is to analyze 17 Latin American countries with data from 2016, by including both effects handled into two different levels accordingly. This work contributes to extend the current debate regarding the impact of Economics on subjective well-being of people by applying the multilevel method. Some of the findings revealed that both the individual economic situation as well as the welfare state and the rule of law of a country generate effects on subjective well-being. Similarly, the effect of interaction between some variables was analyzed, and it was concluded that people with great economic difficulties have a stronger relationship with subjective well-being in areas of higher government spending and higher tax burden.