Impact of Economic Rationality on Subjective Well-Being; A Mediation Analysis of Capital Supremacy

Abstract

This research study consist of fundament concept of economic rationality and its relation with the Subjective wellbeing. It also analysis the mediation impact of capital supremacy. Through this study a positive relationship between the variables is established. The data has been analysis for this study is gathered from two countries, Pakistan and the USA which indicating the generalization of the analysis. The capital supremacy concept is focuses on the money making human behavior. As a rule, thrusts of such a paradigm focus on such elements as economic rationality a significant determinants of economic development and human happiness. To intricate the measured dimensions in detail the research uses a scientific methodological base. The random sampling technique has been used to collect the data and the data has been obtained from two countries Pakistan and United States. Consequently, the process of data collection was carefully done through MS Excel which processed accurate and well-organized data sets. The collected data was analyzed using SmartPLS tool that enabled the handling of multiple investigations of the relationships between the variables. This research shows that economic rationality has directly positive relationship with SWB. However, results also shows that the capital supremacy result of market reliance and capital accumulation decrease this advantages by increasing the financial gaps. This study suggests numerous policies to attain social balance between the neoclassical economic thinking of rationality. While drawing efforts to make a better society across the globe for Subjective wellbeing of people. The work’s relevance is especially significant for the policy makers, economists, and social scientists interested in the complexity of the relationship between economic growth and human welfare.

Keywords: Economic Rationality, Subjective Wellbeing, Capital Supremacy, Mediation Analysis, Structured Equation Modeling