The Effects of Information Asymmetry and Government Size on Happiness: A Case Study from Japan

Abstract

This paper uses individual-level data from Japan (2003) to examine the effects of government size and the disclosure of official government information on happiness. The major findings are as follows: Disclosure of official information is positively associated with the happiness of workers, but not with that of non-workers; and Government size has a positive effect on the happiness of non-workers, but not with that of workers. It is, therefore, found that information asymmetry between government and citizens reduces the happiness of those who bear the cost of public service but does not affect the happiness of public service beneficiaries.

Keywords: happiness, government size, information asymmetry