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Happiness Paradoxes Of China And The West And Equilibrium Solution

Posted on:2011-03-18Degree:MasterType:Thesis
Country:ChinaCandidate:J WangFull Text:PDF
GTID:2189360305999958Subject:World economy
Abstract/Summary:PDF Full Text Request
German philosopher Hegel said, "Happiness is the satisfaction of desire." Some economists expressed as the mean: Happiness = consumption/desire. On this analysis, It can be further expressed as:Happiness =income/desire. The formula simply points out that happiness depends on two factors: income and desire. Income and happiness is proportional, desire and happiness is inversely proportional. When the desire established, the more income, the more happiness; When the income established, the less desire, the more happiness. As this formula, we can explain that, there are two different paths to maximize happiness. First, you can increase income when desire is constant. Second, you can reduce desire when income is constant. To maximize happiness, two completely opposite paths are used in Chinese culture and Western culture. In Western culture people always enlarge the income. However, In Chinese culture people always reduce desire.However, there is paradox in the path of well-being in the both China and the West. The happiness paradox of the west countries (we also call it income paradox) is that when the country becomes more affluent, the average happiness level does not increase. For individuals, as income increases, the happiness he felt does not change or even decreases. The happiness paradox of China, which we call desire paradox, is double. On the one hand, none desire will make a more substantial reduction in income, so that happiness reduces. On the other hand, none desire will become desire, and this desire is very difficult to satisfy, so that happiness is reduces.The formula we said above is static, this paper expands it in two ways: first, introducing time variable to dynamic the formula; second, introducing both of the happiness paradox of China and the west. Our formula can be used to explain the path of Chinese and Western traditions as well as the different happiness paradox of China and the west. Finally, by constructing the Lagrangian function, we can get the Equilibrium solution of the happiness paradox of China and the west. When the time is limited, the marginal revenue of the time that spent on increasing income should be equal to the marginal revenue of time that spent on reducing desire. At this time, People get maximum happiness.According to this argument, we can get a macro inference: Limited resources should be used on the aspect of higher marginal revenue, so the overall happiness could be improved.
Keywords/Search Tags:Happiness, Path, Income, Desire, Paradox, Equilibrium Solution
PDF Full Text Request
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