The economics of happiness is an interdisciplinary field that examines the relationship between economic factors and individual happiness. For economists, happiness represents the wellbeing of citizens, which includes both objective and subjective dimensions. Objective wellbeing is based on the traditional approach of studying life satisfaction and investigates the political, economic, social, and environmental conditions of living. On the other hand, subjective well-being represents an individual's satisfaction with their life. It observes positive and negative emotions and explores the meaning and contentment of individuals. This paper aims to explore the fundamental concepts of the economics of happiness and compare the level of happiness in Croatia with Germany, Bulgaria, and the Czech Republic from 2017. to 2021. Additionally, the paper will present the level of Croatia's gross domestic product (GDP) compared to the mentioned countries. In the empirical part of this final thesis, the results of the analysis of the Human Development Index, the World Happiness Index, the Happy Planet Index, and GDP among the mentioned countries are presented, providing a more comprehensive insight into the economy of happiness and comparing Croatia with other countries. The analysis results revealed significant differences in the Happiness Index, planetary happiness, and Human Development Index among the mentioned countries. Germany emerged at the top of the ranking, achieving the highest values in the happiness index and the human development index. The Czech Republic and Croatia also stood out as countries with high rankings in these categories. On the other hand, Bulgaria had the lowest values in these categories.