Title: Money and Happiness: An experimental study about the effect of money spending and saving on happiness
Regardless of age, gender or job, all people around the globe aspire after maximizing happiness. Since it is a complex subject and influenced by a whole range of different aspects together with sophisticated interrelations between those, it is not only challenging to achieve happiness, but also to define it. Despite many factors affect happiness, the relation between money and happiness has become one of the most tempting questions for scientists to answer. The paper approaches this relations and interprets happiness from an economic perspective.
To answer the question “How does money affect happiness?” we first described theories for more background information and derived some hypotheses based on those theories to better be able to answer our research question. To test our hypothesis, we provided data from the questionnaire and a computer based experiment which were completed by a total of 105 participants. Furthermore, with the help of our questionnaire we let our participants classify themselves into several behavioral economics categories, such as saving and spending behavior, risk aversion, time preference, competitiveness, and others. Another topic this study concentrates on is the barely determined subject of intercultural comparison regarding the relation to money in different countries. Therefore, two economically strong nations have been taken in focus – Germany and the USA.