Sequeira, Tiago Miguel Guterres NevesMinas, Tiago Alexandre Silva2015-02-202015-02-202013-062013http://hdl.handle.net/10400.6/3080There is little evidence of the influence of large governments in happiness and when it exists, it is positive. We show that structural government expenditures and other measures of government imbalances significantly decrease happiness and life satisfaction in European countries. This evidence should lead European politicians to decrease government expenditures and deficits in order to improve satisfaction of their electors and eventually to win elections. This result is consistent with people valuing (negatively) expectations for future tax increases, macroeconomic instability and austerity.There is little evidence of the influence of large governments in happiness and when it exists, it is positive. We show that structural government expenditures and other measures of government imbalances significantly decrease happiness and life satisfaction in European countries. This evidence should lead European politicians to decrease government expenditures and deficits in order to improve satisfaction of their electors and eventually to win elections. This result is consistent with people valuing (negatively) expectations for future tax increases, macroeconomic instability and austerity.engGastos governamentais estruturais - Satisfação de vidaDéfices fiscais - FelicidadeLife satisfactionGovernment sizemaster thesis