Investigating Kuznets Curve of Happiness and Calculating the Happiness Index in provinces of Iran

The lack a close relationship between economic well-being and mental well-being have attracted more attention from economists to substituting a subjective approach to dismissing and evaluating individual and social well-being rather than an objective one; for this purpose, an indicator known as happiness has been introduced.Therefore, in this study, based on the variables of the Gross Nationality Happiness Index, an appropriate index for provinces of Iran was introduced and using the multi-criteria decision-making technique and TOPSIS method during period of 2005-2015 to be calculated and ranked.The ranking results show on average during period considered, provinces of Tehran, Kohgiluyeh, Boyer-Ahmad and Esfahan had highest levels of happiness in the country respectively, and provinces of Sistan and Baluchestan, South Khorasan and Kermanshah are respectively, at low levels of happiness. The important point in calculation of happiness is that central provinces are located in higher ranks above the border provinces of country, which indicates the centrality of happiness in center of country due to amenities facilitation in these areas.In order to investigate the distribution of happiness inequality in Iran, Kuznets relationship was used in both ordinary least squares (OLS) and Robust least squares (RLS) methods for cross-sectional information in 30 provinces of the country. The results indicate the inverse U relationship between the happiness and its inequality. In the first, with increasing happiness, happiness inequality increases, but from one point onwards, due to widespread welfare of general public, with increasing happiness, inequality resulting from it decreases.