Household Wealth, Public Consumption, and Economic Well-Being in the United States

Levy Economics Institute Working Paper No. 386

28 Pages Posted: 21 Oct 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

Asena Caner

affiliation not provided to SSRN

Date Written: September 2003

Abstract

Standard official measures of economic well-being are based on money income. The general consensus is that such measures are seriously flawed because they ignore several crucial determinants of well-being. We examine two such determinants - household wealth and public consumption - in the context of the United States. Our findings suggest that the level and distribution of economic well-being is substantially altered when money income is adjusted for wealth or public consumption.

Keywords: living standards, public consumption, household wealth, inequality

JEL Classification: D31, D6, H4, P16, P17

Suggested Citation

Wolff, Edward N. and Zacharias, Ajit and Caner, Asena, Household Wealth, Public Consumption, and Economic Well-Being in the United States (September 2003). Levy Economics Institute Working Paper No. 386, Available at SSRN: https://ssrn.com/abstract=447101 or http://dx.doi.org/10.2139/ssrn.447101

Edward N. Wolff (Contact Author)

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

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Bard College - Levy Economics Institute

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Ajit Zacharias

Bard College - Levy Economics Institute ( email )

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Asena Caner

affiliation not provided to SSRN ( email )