Does growth cause happiness, or does happiness cause growth?

Although there are many accepted faults with GNP per capita as a measure of the utility gained from wealth, most commentators would still argue that a n increase in GNP per capita will have positive effects on total utility ou tweighing any negative externalities. Taking lessons from a conception of t he nature and causes of happiness that harks back to Adam Smith and the ori ginal Utilitarians, this paper argues that increases in absolute income sho uld have little effect on happiness in rich countries, and that there might instead be channels linking happiness causally with growth. Using time ser ies evidence from happiness polls in ten wealthy countries, the paper finds no support for a causal link from growth to happiness, weak support for a reverse causation and further (weak) support for links between national equ ality and happiness and leisure time and happiness. The paper concludes by offering some consequences of this for theory and policy.