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Bigger or better? The effect of public spending on happiness in Africa

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  • Ariel Herbert Fambeu
  • Georges Dieudonné Mbondo
  • Patricia Tchawa Yomi

Abstract

The aim of this paper is to assess the effect of government spending on happiness in 39 African countries from 2006 to 2018. The neoclassical view predicts a positive effect, while public choice theory predicts the opposite. The results obtained using the Generalized Method of Moment reveal that public spending has no direct effect on happiness in Africa. However, public spending positively affects happiness in the poorest countries of Africa. Furthermore, governments can improve the happiness of African populations through public spending coupled with democratic regimes and the control of inflation.

Suggested Citation

  • Ariel Herbert Fambeu & Georges Dieudonné Mbondo & Patricia Tchawa Yomi, 2022. "Bigger or better? The effect of public spending on happiness in Africa," African Development Review, African Development Bank, vol. 34(4), pages 487-499, December.
    • Handle: RePEc:bla:afrdev:v:34:y:2022:i:4:p:487-499
    DOI: 10.1111/1467-8268.12669
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