TY - JOUR AU - Helliwell,John F. AU - Huang,Haifang TI - How's Your Government? International Evidence Linking Good Government and Well-Being JF - National Bureau of Economic Research Working Paper Series VL - No. 11988 PY - 2006 Y2 - January 2006 UR - http://www.nber.org/papers/w11988 L1 - http://www.nber.org/papers/w11988.pdf N1 - Author contact info: John F. Helliwell Canadian Institute for Advanced Research and Department of Economics University of British Columbia 997-1873 East Mall Vancouver BC V6T 1Z1 CANADA Tel: 604/822-4953 Fax: 604/822-5915 E-Mail: john.helliwell@ubc.ca Haifang Huang Department of Economics University of Alberta 8-14 HM Tory Edmonton Alberta T6G 2H4 CANADA E-Mail: haifang.huang@ualberta.ca AB - In this paper we employ World Values Survey measures of life satisfaction as though they were direct measures of utility, and use them to evaluate alternative features and forms of government in large international samples. We find that life satisfaction is more closely linked to several World Bank measures of the quality of government than to real per capita incomes, in simple correlations and more fully specified models explaining international differences in life satisfaction. We test for differences in the relative importance of different aspects of good government, and find a hierarchy of preferences that depends on the level of development. The ability of governments to provide a trustworthy environment, and to deliver services honestly and efficiently, appears to be of paramount importance for countries with worse governance and lower incomes. The balance changes once acceptable levels of efficiency, trust and incomes are achieved, when more value is attached to building and maintaining the institutions of electoral democracy. ER -