The Levy Institute Measure of Economic Well-Being

The Levy Economics Institute Working Paper No. 372

28 Pages Posted: 7 Apr 2003

See all articles by Edward N. Wolff

Edward N. Wolff

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER); Bard College - Levy Economics Institute

Ajit Zacharias

Bard College - Levy Economics Institute

Date Written: February 2003

Abstract

Our measure of economic well-being is motivated by the conviction that there is substantial room for improving existing official measures of the level and distribution of household economic well-being. The definition of the scope of our measure is guided by an extended concept of income that fundamentally reflects the resources that a household can command for facilitating current consumption or acquiring financial and physical assets. In the contemporary United States, three main institutions - markets, the government, and the household - mediate such command. The measure therefore attempts to integrate the following components: Money income, wealth, noncash transfers from the business and government sectors, some forms of public consumption, and household production. We discuss conceptual issues relevant to each of the components and outline an approach for combining them.

Keywords: living standards, quality of life, income inequality, wealth, time allocation

JEL Classification: D3, D6, H2, H5, P17

Suggested Citation

Wolff, Edward N. and Zacharias, Ajit, The Levy Institute Measure of Economic Well-Being (February 2003). The Levy Economics Institute Working Paper No. 372, Available at SSRN: https://ssrn.com/abstract=382423 or http://dx.doi.org/10.2139/ssrn.382423

Edward N. Wolff (Contact Author)

New York University (NYU) - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Bard College - Levy Economics Institute

Blithewood
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United States

Ajit Zacharias

Bard College - Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States
845-758-7734 (Phone)
845-758-1149 (Fax)

HOME PAGE: http://www.levy.org

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