scholarly journals Going beyond GDP with a parsimonious indicator: inequality-adjusted healthy lifetime income

2021 ◽  
Author(s):  
David E. Bloom ◽  
Victoria Y. Fan ◽  
Vadim Kufenko ◽  
Osondu Ogbuoji ◽  
Klaus Prettner ◽  
...  
Keyword(s):  
Good Life ◽  
Well Being ◽  
Per Capita Gdp ◽  
Mortality And Morbidity ◽  
Lifetime Income ◽  
Per Capita ◽  
Data Requirements ◽  
Beyond Gdp

Per capita GDP has limited use as a well-being indicator because it does notcapture many dimensions that imply a “good life”, such as health and equality ofopportunity. However, per capita GDP has the virtues of being easy to interpret andto calculate with manageable data requirements. Against this backdrop, there is aneed for a measure of well-being that preserves the advantages of per capita GDP,but also includes health and equality. We propose a new parsimonious indicatorto fill this gap, and calculate it for 149 countries. This new indicator could beparticularly useful in complementing standard well-being indicators during theCOVID-19 pandemic. This is because (i) COVID-19 predominantly affects olderadults beyond their prime working ages whose mortality and morbidity do notstrongly affect GDP, and (ii) COVID-19 is known to have large effects on inequalityin many countries.

scholarly journals Global improvements in Years of Good Life since 1950

2021 ◽  
Author(s):  
Erich Striessnig ◽  
Claudia Reiter ◽  
Anna Dimitrova
Keyword(s):  
Life Expectancy ◽  
Good Life ◽  
Composite Index ◽  
Well Being ◽  
Gdp Per Capita ◽  
World Population ◽  
Aggregate Level ◽  
Recent Past ◽  
Cognitive Limitations ◽  
Per Capita

Human well-being at the national aggregate level is typically measured by GDP per capita, life expectancy or a composite index such as the HDI. A more recent alternative is the Years of Good Life (YoGL) indicator presented by Lutz et al. (2018; 2021). YoGL represents a refinement of life expectancy in which only those person-years in a life table are counted that are spent free from material (1), physical (2) or cognitive limitations (3), while being subjectively perceived as satisfying (4). In this article, we present the reconstruction of YoGL to 1950 for 140 countries. Since life expectancy – as reported by the UN World Population Prospects in fiveyearly steps – forms the basis of our reconstruction, the presented dataset is also available on a five-yearly basis. In addition, like life expectancy, YoGL can be flexibly calculated for different sub-populations. Hence, we present separate YoGL estimates for women and men. Due to a lack of data, only the material dimension can be reconstructed based directly on empirical inputs since 1950. The remaining dimensions are modelled based on information from the more recent past.

scholarly journals Beyond GDP? Welfare across Countries and Time

2016 ◽  
Vol 106 (9) ◽  
pp. 2426-2457 ◽  
Author(s):  
Charles I. Jones ◽  
Peter J. Klenow
Keyword(s):  
Western Europe ◽  
Well Being ◽  
The United States ◽  
Gdp Per Capita ◽  
Summary Statistic ◽  
Micro Data ◽  
Per Capita ◽  
Highly Correlated ◽  
Beyond Gdp ◽  
Economic Well Being

We propose a summary statistic for the economic well-being of people in a country. Our measure incorporates consumption, leisure, mortality, and inequality, first for a narrow set of countries using detailed micro data, and then more broadly using multi-country datasets. While welfare is highly correlated with GDP per capita, deviations are often large. Western Europe looks considerably closer to the United States, emerging Asia has not caught up as much, and many developing countries are further behind. Each component we introduce plays a significant role in accounting for these differences, with mortality being most important. (JEL D63, E21, E23, E24, I12, O57)

L'ISEW applicato alla Lombardia: pregi, limiti e indicazioni di policy

2009 ◽  
pp. 27-52
Author(s):  
Brugnoli Brugnoli
Keyword(s):  
Environmental Sustainability ◽  
Well Being ◽  
Development Model ◽  
Economic Welfare ◽  
Shadow Prices ◽  
Per Capita Gdp ◽  
Factors Affecting ◽  
Regional Policies ◽  
Per Capita ◽  
Comprehensive Measurement

- This study analyses the evolution of well-being in Lombardy for the period 2000-2004. Methods and Results In order to measure well-being in Lombardy we used the ISEW (Index of Sustainable Economic Welfare) in the version produced by the New Economics Foundation. The ISEW is an index derived from a series of corrections and amendments to GDP, made with the aim of obtaining a comprehensive measurement which takes into account income distribution, environmental sustainability, and wealth stocks, and is immediately comparable with the indicator of regional income. Economic quantification of the components of the ISEW necessitated the use of discrete methodologies, in particular for determining the shadow prices of resources. The results also depend at least in part on these discretional elements. Over the period studied the ISEW for Lombardy was found to outperform per capita GDP, though this performance was not evenly distributed across all the components considered. Conclusions The analysis shows that economic growth achieved during 2000-2004 was not at the expense of sustainability; on the contrary, the development model looked carefully at the most crucial factors affecting sustainability itself. The study concludes by presenting some considerations on the possible use of this index for monitoring the impacts of regional policies.JEL: I31, R11

International differences in labor productivity: Role of capital, technological level and resource rent

2016 ◽  
pp. 67-93 ◽  
Author(s):  
A. Zaytsev
Keyword(s):  
Labor Productivity ◽  
Developed Countries ◽  
Resource Rent ◽  
Per Capita Gdp ◽  
Technological Level ◽  
Per Capita ◽  
Oil Sector ◽  
Population Ratio ◽  
Gdp Gap ◽  
Productivity Gap

Using level accounting methodology this article examines sources of per capita GDP and labor productivity differences between Russia and developed and developing countries. It considers the role played by the following determinants in per capita GDP gap: per hour labor productivity, number of hours worked per worker and labor-population ratio. It is shown that labor productivity difference is the main reason of Russia’s lagging behind. Factors of Russia’s low labor productivity are then estimated. It is found that 33-39% of 2.5-5-times labor productivity gap (estimated for non-oil sector) between Russia and developed countries (US, Canada, Germany, Norway) is explained by lower capital-to-labor ratio and the latter 58-65% of the gap is due to lower technological level (multifactor productivity). Human capital level in Russia is almost the same as in developed countries, so it explains only 2-4% of labor productivity gap.

Beyond GDP: The Quest for a Measure of Social Welfare. Part I

2012 ◽  
pp. 67-93 ◽  
Author(s):  
M. Fleurbaey
Keyword(s):  
Economic Theory ◽  
Social Welfare ◽  
Well Being ◽  
National Product ◽  
Future Generations ◽  
Modern Economic ◽  
Aggregate Wealth ◽  
Net National Product ◽  
Sustainability Policy ◽  
Beyond Gdp

The first part of the paper is devoted to the monetary indicators of social welfare. It is shown which methods of quantitative estimating the aggregate wealth and well-being are available in the modern economic theory apart from the traditional GDP measure. The limitations of the methods are also discussed. The author shows which measures of welfare are adequate in the dynamic context: he considers the problems of intertemporal welfare analysis using the Net National Product (NNP) for the sustainability policy and in the context of concern for well-being of the future generations.

Beyond GDP: The Quest for a Measure of Social Welfare. Part II

2012 ◽  
pp. 32-51 ◽  
Author(s):  
M. Fleurbaey
Keyword(s):  
Social Welfare ◽  
Social Relations ◽  
Well Being ◽  
Welfare Economics ◽  
Subjective Well Being ◽  
Alternative Approaches ◽  
Micro Level ◽  
Beyond Gdp

The second part of the paper is devoted to the non-monetary indicators of social welfare. Various approaches to the study of subjective well-being and happiness are described. The author shows what problems a researcher would encounter trying to analyze welfare on the micro-level and to take account of the cognitive and affective aspects of the individuals assessment of their well-being, as well as the relevance of social relations. The author also shows to what extent the alternative approaches, particularly the analysis of functionings and capabilities advanced by A. Sen are compatible to the modern welfare economics and what prospects the latter has.

Long Run Money Neutrality: The Case of Guatemala

2005 ◽  
pp. 127-138 ◽  
Author(s):  
Frederick H. Wallace
Keyword(s):  
Neutrality Test ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Long Run ◽  
Per Capita

The Fisher and Seater (1993) methodology is used to test for the long run neutrality of money in Guatemala, 1950-2001. Real GDP, real per capita GDP, and the money measures, M1 and M2, are integrated of order one [1(1)]. Given these orders of integration, the Fisher-Seater neutrality test can be applied. The evidence suggests that M1 and M2 are neutral with respect to real GDP. Furthermore, the test indicates that M1, but not M2, is neutral with respect to real per capita GDP as well.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

Applicability of Human Development Index for Measuring Economic Well-being: A Study on GDP and HDI Indicators from Indian Context

2021 ◽  
pp. 001946622199862
Author(s):  
G G Sajith ◽  
K. Malathi
Keyword(s):  
Human Development ◽  
Human Development Index ◽  
Well Being ◽  
Development Project ◽  
Human Being ◽  
Composite Matrix ◽  
Human Welfare ◽  
Development Index ◽  
Development Indicator ◽  
Per Capita

The tracking of gross domestic product (GDP) as a measure of well-being of the society or human-being has been debated by many researchers and economists (Elizabeth, 2007; Abhinav, 2014; Deb, 2015 ) There are many deficiencies in tracking GDP as the economic development indicator, as it does not capture the inequality or true development of Human-being. Noted economist Mehbub ul Haq’s human development project defined a composite matrix which captures the life expectancy, education and per capita indicators in one matrix. This was developed to track as a development indicator of human welfare. In the previous studies, the GDP or GDP per capita was regressed with the Human Development Index (HDI) composite index and indicated a direct correlation between the two variables. However, this article examines the contribution of the income component in the HDI index by recalculating the composite matrix. This article also qualitatively examines the ability of HDI index to measure the human development parameters. JEL Classification Codes: E01, I12, O1

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