Household wealth, public consumption and economic well-being in the United States
AbstractStandard official measures of household economic well-being in several countries are based on money income. The general consensus is that such measures are limited because they ignore certain crucial determinants of well-being. We examine two such determinants--household wealth and public consumption--in the context of the US. 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. Over the 1989--2000 period, median well-being appears to increase faster when these adjustments are made than when standard money income is used. Adding imputed rent and annuity from household wealth to household income increases measured inequality, while adding public consumption reduces it. However, all three measures show about the same rise in inequality over the period. Copyright 2005, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 29 (2005)
Issue (Month): 6 (November)
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Other versions of this item:
- Edward N. Wolff & Ajit Zacharias & Asena Caner, 2003. "Household Wealth, Public Consumption and Economic Well-Being in the United States," Economics Working Paper Archive wp_386, Levy Economics Institute, The.
- Edward N. Wolff & Ajit Zacharias & Asena Caner, 2003. "Household Wealth, Public Consumption, and Economic Well-Being in the United States," Public Economics 0309004, EconWPA.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D6 - Microeconomics - - Welfare Economics
- H4 - Public Economics - - Publicly Provided Goods
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- P17 - Economic Systems - - Capitalist Systems - - - Performance and Prospects
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