- 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
GDP is first and foremost a measure of economic activity and production, and distinct from a measure of welfare, even when narrowly defined as material well-being. Despite this difference, GDP and welfare are not unrelated concepts. Links include the scope of final products that enter GDP and the welfare basis of price indices that are used to compute real GDP. Further, the national accounts systematically link GDP with household consumption and income, the key determinants of average material well-being. Last, in measures of intertemporal social welfare, GDP appears through the need to account for future changes in productivity. This chapter also describes efforts to adjust GDP to gauge welfare more directly but concludes that they have not gained traction because there is no well-articulated theory that would indicate the scope and nature of the required adjustments and because GDP is tremendously useful as a measure of production that needs complementing but not substituting.
Deputy Director, OECD Statistics Directorate
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