IDEAS home Printed from https://ideas.repec.org/a/nse/ecosta/ecostat_2020_517t_2.html

Building Indicators for Inclusive Growth and its Sustainability: What Can the National Accounts Offer and How Can They Be Supplemented?

Author

Listed:
  • Didier Blanchet
  • Marc Fleurbaey

Abstract

[eng] How can the national accounts be linked to the objective of obtaining an inclusive measurement of growth, integrating distributional issues and all determining factors of well-being, in both the short and long term? The accounts offer measurements of real income that have undeniable connections with the quantification of current well-being, but they ignore the non-monetary factors of such well-being and they do not allow for evaluation of its sustainability. We present a way of dealing with the first limitation, the notion of equivalent income. It fits well with the accounts approach, it has relatively strong normative justifications and it lends itself well to the micro-macro bridging exercises needed to evaluate inequalities. Creating overall measurements of sustainability seems much more problematic, as it is impossible to do so without projection models that go far beyond the framework of current statistical output.

Suggested Citation

  • Didier Blanchet & Marc Fleurbaey, 2020. "Building Indicators for Inclusive Growth and its Sustainability: What Can the National Accounts Offer and How Can They Be Supplemented?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 9-24.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_2
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2020
    as

    Download full text from publisher

    File URL: https://insee.fr/en/statistiques/fichier/4770146/02-ES_517-518-519_Blanchet-Fleurbaey_ENWeb.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.24187/ecostat.2020.517t.2020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Roman, Philippe & Thiry, Géraldine, 2016. "The inclusive wealth index. A critical appraisal," Ecological Economics, Elsevier, vol. 124(C), pages 185-192.
    2. Jean-Marc Germain & Thomas Lellouch, 2020. "The Social Cost of Global Warming and Sustainability Indicators: Lessons from an Application to France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 81-102.
    3. Sen, Amartya, 1979. "The Welfare Basis of Real Income Comparisons: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(1), pages 1-45, March.
    4. Diane Coyle, 2014. "GDP: A Brief but Affectionate History," Economics Books, Princeton University Press, edition 1, number 10183, December.
    5. repec:spo:wpmain:info:hdl:2441/4vsqk7docb9nmophtp29pk68cr is not listed on IDEAS
    6. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    7. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    8. Jean Gadrey & Florence Jany-Catrice, 2005. "Les nouveaux indicateurs de richesse," Post-Print halshs-00198357, HAL.
    9. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
    10. Murtin, Fabrice & Boarini, Romina & Cordoba, Juan Carlos & Ripoll, Marla, 2017. "Beyond GDP: Is there a law of one shadow price?," European Economic Review, Elsevier, vol. 100(C), pages 390-411.
    11. Charles I. Jones & Peter J. Klenow, 2016. "Beyond GDP? Welfare across Countries and Time," American Economic Review, American Economic Association, vol. 106(9), pages 2426-2457, September.
    12. Triplett, Jack E, 2001. "Should the Cost-of-Living Index Provide the Conceptual Framework for a Consumer Price Index?," Economic Journal, Royal Economic Society, vol. 111(472), pages 311-334, June.
    13. Jérôme Accardo, 2020. "Supplementing GDP: Some Recent Contributions from Official Social Statistics," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 25-39.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xavier Timbeau, 2024. "Comment – The Lack of Interest in Economics for the Challenge of the Century," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 543, pages 65-74.
    2. Didier Blanchet, 2020. "What Should the Concept of Domestic Production Mean in Globalized Economies?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 205-214.
    3. Didier Blanchet, 2020. "What Should the Concept of Domestic Production Mean in Globalized Economies? [Quelle signification pour le concept de produit intérieur dans des économies mondialisées ?]," Post-Print hal-05290813, HAL.
    4. J.-M. Germain, 2020. "A Welfare Based Estimate of “Real Feel GDP” for Europe and the USA," Documents de Travail de l'Insee - INSEE Working Papers g2020-03, Institut National de la Statistique et des Etudes Economiques.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Schreyer, 2021. "Framing Measurement Beyond GDP," CEPA Working Papers Series WP172021, School of Economics, University of Queensland, Australia.
    2. V. K. Shrotryia & Shashank Vikram Pratap Singh, 2020. "Measuring Progress Beyond GDP: A Theoretical Perspective," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 143-165, November.
    3. Marc Fleurbaey & Guillaume Gaulier, 2009. "International Comparisons of Living Standards by Equivalent Incomes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(3), pages 597-624, September.
    4. Günseli BERIK, 2020. "Measuring what matters and guiding policy: An evaluation of the Genuine Progress Indicator," International Labour Review, International Labour Organization, vol. 159(1), pages 71-94, March.
    5. Hoff, Jens V. & Rasmussen, Martin M.B. & Sørensen, Peter Birch, 2021. "Barriers and opportunities in developing and implementing a Green GDP," Ecological Economics, Elsevier, vol. 181(C).
    6. Endress, Lee H. & Pongkijvorasin, Sittidaj & Roumasset, James & Wada, Christopher A., 2014. "Intergenerational equity with individual impatience in a model of optimal and sustainable growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 620-635.
    7. Carl Obst & Lars Hein & Bram Edens, 2016. "National Accounting and the Valuation of Ecosystem Assets and Their Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 1-23, May.
    8. Olivier E. Malay, 2021. "How to Articulate Beyond GDP and Businesses’ Social and Environmental Indicators?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 1-25, May.
    9. Lee H. Endress & James A. Roumasset & Christopher A. Wada, 2020. "Do Natural Disasters Make Sustainable Growth Impossible?," Economics of Disasters and Climate Change, Springer, vol. 4(2), pages 319-345, July.
    10. Hamilton, Kirk & Atkinson, Giles, 1996. "Air pollution and green accounts," Energy Policy, Elsevier, vol. 24(7), pages 675-684, July.
    11. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.
    12. DECANCQ, Koen & FLEURBAEY, Marc & SCHOKKAERT, Erik, 2014. "Inequality, income, and well-being," LIDAM Discussion Papers CORE 2014018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. Nicholas Oulton, 2022. "The Productivity-Welfare Linkage: A Decomposition," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2022-07, Economic Statistics Centre of Excellence (ESCoE).
    14. Cameron Hepburn & Eric Beinhocker & J. Doyne Farmer & Alexander Teytelboym, 2014. "Resilient and Inclusive Prosperity within Planetary Boundaries," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(5), pages 76-92, September.
    15. Redding, Stephen & Weinstein, David, 2016. "A Unified Approach to Estimating Demand and Welfare," CEPR Discussion Papers 11421, C.E.P.R. Discussion Papers.
    16. Romina Boarini & Marc Fleurbaey & Fabrice Murtin & Paul Schreyer, 2022. "Well‐being during the Great Recession: new evidence from a measure of multi‐dimensional living standards with heterogeneous preferences," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 104-138, January.
    17. Didier Blanchet & Marc Fleurbaey, 2020. "Building Indicators for Inclusive Growth and its Sustainability: What Can the National Accounts Offer and How Can They Be Supplemented? [Construire des indicateurs de la croissance inclusive et de sa soutenabilité : que peuvent offrir les comptes ," Post-Print hal-05269528, HAL.
    18. Duernecker, Georg & Herrendorf, Berthold & Valentinyi, Ákos, 2021. "The productivity growth slowdown and Kaldor’s growth facts," Journal of Economic Dynamics and Control, Elsevier, vol. 130(C).
    19. Auer Ludwig von, 2005. "Potenziale und Grenzen eines nutzenbasierten ökonomischen Leitbildes für die amtliche Inflationsmessung / What Role Should Economic Reasoning Play in the Compilation of the Official Consumer Price Index?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(3), pages 27-46, June.
    20. Asheim, Geir B., 2000. "Green national accounting: why and how?," Environment and Development Economics, Cambridge University Press, vol. 5(1), pages 25-48, February.

    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nse:ecosta:ecostat_2020_517t_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Veronique Egloff (email available below). General contact details of provider: https://edirc.repec.org/data/inseefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.