• Review of Culture and Economy
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• v.20 no.3
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• pp.35-59
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• 2017

The main objective of this study is to analyze which aspects between cultural budget or cultural activity (such as musical, theater, classic performance etc) will affect more to enhance the happiness of the local government residents. This study tries to analyze the effect of 'cultural aspect' on local residents' happiness because relatively there are not enough studies to analyze the relationship between culture and happiness. Especially, it is hard to find out studies focusing on both cultural budget and activities. According to the empirical results, the relationship between cultural budget and citizens happiness turns out to be statistically significant in the direction of the positive, while the relationship between cultural activities and citizens happiness does not turn out to be statistically significant. This finding can be justified for policy makers to increase cultural budget to make cultural city. In addition, the reason why cultural activities are not significant can be interpreted from the perspective of 'accessibility', 'degree of quality' and 'incompatibility of cultural demand of residents' and finally this study provides various policy implications.