An Extensive Analysis of GNH Index

The Gross National Happiness Index is a single number index developed from 33 indicators categorized under nine domains. The GNH Index is constructed based upon a robust multidimensional methodology known as the Alkire-Foster method. The GNH Index is decomposable by any demographic characteristic and so is designed to create policy incentives for the government, NGOs and businesses of Bhutan to increase GNH. The 33 indicators under the nine domains aim to emphasize different aspects of wellbeing and different ways of meeting these underlying human needs. The 33 indicators are statistically reliable, normatively important, and easily understood by large audiences. The domains are equally weighted. Within each domain, the objective indicators are given higher weights while the subjective and self-reported indicators are assigned lower weights. This is a detailed exposition of the construction of the GNH Index.