Pages: 107-116

Abstract

 Recent studies have indicated that psychological factors like cognitive ability have a significant role in experiential modeling of life satisfaction. Additionally, government size has a significant effect on life satisfaction index (LSI) in Iran. This study examined the effect of IQ, government size, and government inequality on life satisfaction in Iran from 2002 to 2016 using Johansen method.The results showed that government size had a negative and significant effect on LSI; i.e., if the government size increased by one percent, assuming the other factors being constant, LSI decreased by 0.002%. Additionally, the results showed that IQ had a positive and significant effect on LSI; that is, if IQ increased by one percent, assuming that other factors were constant, LSI increased by 89.9%. In other words, with an increase in IQ, life satisfaction increased in Iran. Gini coefficient had a negative and significant effect on LSI; i.e., if Gini coefficient increased by one percent, assuming the other factors being constant, LSI decreased by 0.025%. In other words, with an increase in Gini coefficient and the inequality of income, life satisfaction decreased in the country.