  This article uses data of subjective Life Satisfaction aggregated to the
community level in Canada and examines the spatial interdependencies and
spatial spillovers of community happiness. A theoretical model of utility is
presented. Using spatial econometric techniques, we find that the utility of
community, proxied by subjective measures of life satisfaction, is affected
both by the utility of neighbouring communities as well as by the latter's
average household income and unemployment rate. Shared cultural traits and
institutions may justify such spillovers. The results are robust to the
different binary contiguity spatial weights matrices used and to the various
econometric models. Clusters of both high-high and low-low in Life Satisfaction
communities are also found based on the Moran's I test
