Happiness is a subjective measure of the quality of life in all its domains. Lately, the social and economic dimensions of happiness and its measurement have been the subject of some study. There are several factors that affect individual well-being, with income, employment, health, religion, marriage, education and workplace satisfaction being important determinants. Macroeconomic variables such as unemployment, poverty, literacy rate, life expectancy, inflation rate, crime rate and political stability also affect happiness. This article looks at the literature of the economics of happiness and is a survey of the relationship between happiness and several correlates of happiness. It aims to establish that analysing happiness from an economist's perspective can help choose between alternative public policies, and proposes an alternative valuation methodology for non-marketed goods and services.
