IDEAS home Printed from https://ideas.repec.org/p/eoe/escoed/escoe-dp-2024-19.html

Inclusive Income Accounts: Practical Measures to Go Beyond GDP

Author

Listed:
  • Heys, Richard
  • Taylor, Cliodhna

Abstract

It is well known that Gross Domestic Product (GDP) is an incomplete measure of economic welfare. In particular, it excludes the value associated with natural and human capital. This paper develops two new measures, Gross and Net Inclusive Income as analogues to GDP and Net National Disposable Income (NNDI), using internally consistent National Accounts methods and existing data-sources to extend the scope of welfare measurement. Using exchange values, GII and NII do not incorporate externalities but do clarify trade-offs between the economic, environmental and social domains. This paper also presents and comments on experimental results. For example, after adjusting for atmospheric degradation, growth in the UK’s NII between 2008 and 2019 is faster than GDP growth, as traditional measures exclude efforts to reduce carbon emissions, suggesting that traditional productivity measures which exclude efforts to reduce carbon emissions may underestimate the extent of innovation in the UK.

Suggested Citation

  • Heys, Richard & Taylor, Cliodhna, 2024. "Inclusive Income Accounts: Practical Measures to Go Beyond GDP," Discussion Papers escoe-dp-2024-19, Economic Statistics Centre of Excellence.
    • Handle: RePEc:eoe:escoed:escoe-dp-2024-19
    as

    Download full text from publisher

    File URL: https://www.repository-escoe.com/id/eprint/57/1/ESCoE%20DP%202024-19.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    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:eoe:escoed:escoe-dp-2024-19. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Communications Manager (email available below). General contact details of provider: https://edirc.repec.org/data/escoeuk.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.