Exploring the Component of Misery Index During Different Regimes: A Case Study of Pakistan

Abstract

The primary purpose of this study is to explore the major contributing component of the misery index during different regimes in Pakistan between 1975-2023. Inflation was found to be the primary - over 90% - contributor to the misery level in Pakistan, followed by the unemployment level, and lastly, the level of being a peaceful country (Global Peace Index). The Okun’s Misery Index has been modified to consider the role of peace, which indirectly affects the economic growth rate in the country. The adjusted misery index (MMI) is obtained by adding the Global Peace Index (GPI) as a third component in Okun’s index. The regression equations show that the impact of inflation on the misery index is more than unemployment, and the least of them all was the level of peace index. Furthermore, ways to decrease the misery index score have also been suggested in this article, which the original inventor of the misery index did not do.