Human Development and Economics of Happiness Utility Enters through Back Door

Abstract: This paper is set explore the concepts of Human Development and Happiness. In the process an attempt is made to trace the origin of the concepts as well as the components that constitute the core of human development index and happiness indices so as to examine if any correlation exists between the two. The role of utility is examined through the components of the indices as well as the theoretical framework. The paper argues that the measurement in terms of capabilities as advocated by Sen and Nussbaum has nearly freed welfare and well-being measurements from the clutches of “utility”, while the measurement in terms of happiness, as being attempted by many, has invited utility through the back door. It appears that the Neo-classical utility will continue to rule the roost through happiness studies