- Series Information
- The Oxford Handbook of Well-Being and Public Policy
- List of Contributors
- Cost-Benefit Analysis
- Inequality and Poverty Measures
- Social Welfare Functions
- QALY-Based Cost-Effectiveness Analysis
- Fair Allocation
- Social Ordering Functions
- Multidimensional Indicators of Inequality and Poverty
- Happiness-Based Policy Analysis
- Preference-Based Views of Well-Being
- Mental State Approaches to Well-Being
- Objective Goods
- Subjective Well-Being in Psychology
- Subjective Well-Being in Economics
- Equivalent Income
- Extended Preferences
- SWB as a Measure of Individual Well-Being
- Does the Choice of Well-Being Measure Matter Empirically?
- Does Fairness Require a Multidimensional Approach?
- The Capability Approach and Well-Being Measurement for Public Policy
- Measuring Poverty: A Proposal
- Multidimensional Poverty Indices: A Critical Assessment
- Social Evaluation under Risk and Uncertainty
- Individual Responsibility and Equality of Opportunity
- Welfare Comparisons with Heterogeneous Prices, Consumption, and Preferences
- Welfare and the Household
- Preference Inconsistency: A Psychological Perspective
- Lifetime Well-Being
- The Well-Being of Future Generations
- Author Index
- Subject Index
Abstract and Keywords
The chapter provides an overview of the methods and techniques employed by economic statisticians in compiling measures of real expenditure for use in making temporal and spatial comparisons of economic welfare. The role of money-metric utility in making price and welfare comparisons is explored. Temporal measures of price change based on the Konus cost-of-living index and the associated measures of welfare change for individuals and groups of individuals are discussed. Links between the commonly used Laspeyres, Paasche, Fisher, and Tornqvist index numbers and the Konus index-based measures of price and real expenditure change are established. A section of the chapter is devoted to spatial price comparisons where heterogeneity in prices, consumption, and preferences poses challenges for statisticians. Multilateral index number methods based on the money-metric utility used in spatial and cross-country price and welfare comparisons including the Geary, Gini-Éltetö-Köves-Szulc, and spatial chaining methods are canvassed.
ARC Professorial Fellow, School of Economics, University of Queensland
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