The three happinesses and the happiness formula : lessons from the Hong Kong evidence

The paper draws on results of surveys conducted in Hong Kong since 2005 to test the three happinesses theory and the happiness formula. The three happinesses theory suggests that the positive or negative feelings as well as the strengths of such affective feelings associated with an activity would depend on the state of mind of the individual engaging in the activity, and this would depend on prospective as well as retrospective considerations. The three happinesses are based on a whole life experience, the capability for which can be switched on using the happiness formula consisting of Love, Insight, Fortitude, and Engagement

Globalization, unemployment, and excess capacity : a model and a conjecture

Using a theoretical model with an industrial world trading with a developing world and assuming no impediment to capital flows, it is shown that an abundant supply of unskilled labor will render real wages for the unskilled close to the subsistence level and will result in excess capacity. The rate of return for traditional manufacturing investment at the margin will decline so funds will seek to invest in financial assets and real property, boosting their prices. Under reasonable assumptions about the income elasticity and the price elasticity of demand for manufacturing products in rich and poor countries, it is shown that a global minimum wage may improve welfare. The paper discusses possible risks of such a strategy

Hong Kong Happiness Index Survey 2012

The “Hong Kong Happiness Index Survey 2012” indicates a slight slip of Hong Kong people’s happiness index to 70.5, from 71.3 last year on a scale of 0-100. As before, females continue to command a premium over males in happiness, and older people tend to be happier. Both work pressures, particularly excessively long hours, and financial pressures are important causes of unhappiness among Hong Kong people. According to the survey results, low-income families are generally less happy than those better off. The lowest happiness score, at 66.9, however, goes to the sandwich class with monthly income from HK$30,000-39,999 per month. Satisfaction with public policy, and particularly the satisfaction with the public healthcare system, has improved. The former rose from 4.69 last year to 4.77 on a scale of 0-10, while the latter rose noticeably from 5.67 to 6.18 - a satisfactory level. However, respondents still considerthe quality of public policy, though improved, as slightly unsatisfactory (as their satisfaction score stays below 6). Four key determinants of happiness, namely Love, Insight, Fortitude and Engagement (LIFE) were also surveyed. This year the scores for Insight and Engagement have slipped, Fortitude edgedand Love soared (Please see Table 1 in Appendix),suggesting that Hong Kong people are mostly loving and resilient, but may need more wisdom and a greater sense of purpose in their lives. The Hong Kong Happiness Index Survey 2012is the eighthin the series. A total of 926respondents aged 21 or above were interviewed by telephone through random sampling on 8-13 November. 嶺南大學公共政策研究中心最新一期「香港快樂指數調查」結果顯示，港人快樂指數由去年的71.3分輕微下跌至70.5分（以0-100分計算）。一如以往，女性的快樂指數高於男性，而年長人士亦較年青組別快樂。 工作壓力（尤其是工時太長）和財政壓力，顯然是導致香港市民不快樂的主要原因。根據調查結果顯示，低收入家庭一般而言比收入較高者不快樂，但家庭月入港幣30,000至39,999元的夾心階層則例外；他們的快樂指數只有66.9，是眾多收入組別中最低。 今年市民對公共政策和公共醫療服務的滿意度有所上升，以0-10分計算，前者的分數由4.69分輕微上升至4.77分，而後者則由5.67分顯著跳升至6.18分；表示港人對政府整體施政稍為不滿（滿意度低於6）。 此外，調查也問及有關快樂程度的四大決定因素「LIFE」──即「關愛」（Love）、「智慧」（Insight）、「堅毅」（Fortitude）及「行動」（Engagement）。今年「智慧」和「行動」的得分稍跌，「堅毅」的得分微升，而「關愛」的得分則顯著上升（請參閱附錄的表一），顯示香港人具愛心和抗逆力，但在智慧和有生活目標方面仍有不足。 「香港快樂指數調查」連續第八年由嶺南大學公共政策研究中心設計及進行。是次調查於11月8日至13日期間，以隨機抽樣方式向926名21歲或以上人士進行電話訪問

A new (and old) macroeconomic policy framework

This paper proposes a framework built on the simple Keynesian Cross but recommends a non-Keynesian fiscal monetary policy mix. A fiscal policy conditions index and a monetary conditions index are proposed, to be compared to the full employment compatible fiscal and monetary conditions. Fiscal policy should be inert throughout the different phases of the business cycle while monetary policy should adjust to the changing conditions in order to maintain full employment without overheating. The slightly different policy considerations for bigger and for smaller economies are discussed

A proposed international unit of account : implications for financial markets, commodity markets, and research

There are substantial benefits from having an indexed unit of account for denominating bonds, contracting, and for quoting commodity prices. A new real effective exchange rate (REER) index is derived using GDP weights and an implicit world price index obtained incidental to the derivation of the indexed unit of account. In a prototype exports function estimation, this new index beats most of the other published real effective exchange rate indices. The superior performance is probably due to the fact that with globalization and production fragmentation trade weights have become increasingly misleading because of the prevalence of re-exports and even re-re-exports

The world currency unit : can it work?

This paper uses the World Currency Unit framework of Ho (2000) to consider the feasibility and the benefits for a country to link its currency to the WCU. It also throws light on the workability of “global bonds” denominated in the WCU. Empirical data from Hong Kong, Japan, the United States, the UK, and South Korea are used. The data suggest that a real exchange rate concept that can be compared across nations can be built on the WCU and is a useful explanatory variable for real exports. A country that pegs its currency to the WCU is also likely to enjoy lower and more stable real interest rates, less fluctuations in competitiveness, and lower inflation. A WCU-exchange standard among smaller countries, and independent monetary policy among the key countries constituting the WCU, appear to be a feasible option that will bring the world closer to monetary and capital market integration

True democracy without powerful parties

This paper argues that a government for the people and by the people requires an effective constitution more than electoral politics. While the author agrees to the need for democratic processes, it is pointed out that party politics and uninformed voting diminish the democratic nature of an election. Powerful parties suppress the free expression of opinions and judgments and harm the cause of democracy. True democracy requires that candidates be accountable to the constituents and not to the party, and that voters “do their homework” about the candidates before they vote