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Development of Estimates for Household Production of Non-Market Services in OECD Countries for the Index of Economic Well-Being

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  • Kar-Fai Gee

Abstract

With one notable exception, the production of non-market services produced and consumed by households is currently not included in the System of National Accounts. The activity, however, represents an important aspect of a country’s material well-being. This research note contains a literature review on the different methods of valuing household production of non - market services. The research note also incorporates estimates of household production of non-market services for various OECD countries into the 2008 Index of Economic Well-Being (IEWB) to examine how it affects the countries' ranking in the Index. We find that including estimates of household production of non - market services into the consumption flow portion of the 2008 IEWB for OECD countries reduces the gap in total consumption flows per capita between the United States and the other OECD countries. The relative ranking of countries according to consumption flows per capita in the 2008 IEWB for OECD countries changes slightly after the inclusion of household production of non-market services.

Suggested Citation

  • Kar-Fai Gee, 2015. "Development of Estimates for Household Production of Non-Market Services in OECD Countries for the Index of Economic Well-Being," CSLS Research Reports 2015-09, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:1509
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    File URL: http://www.csls.ca/reports/csls2015-09.pdf
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    References listed on IDEAS

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    5. John Fitzgerald & John Wicks, 1990. "Measuring The Value Of Household Output: A Comparison Of Direct And Indirect Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 129-141, June.
    6. Lars Osberg & Andrew Sharpe, 2011. "Moving from a GDP-Based to a Well-Being Based Metric of Economic Performance and Social Progress: Results from the Index of Economic Well-Being for OECD Countries, 1980-2009," CSLS Research Reports 2011-12, Centre for the Study of Living Standards.
    7. Andrew Sharpe & Alexander Murray & Benjamin Evans & Elspeth Hazell, 2011. "The Levy Institute Measure of Economic Well-Being: Estimates for Canada, 1999 and 2005," Economics Working Paper Archive wp_680, Levy Economics Institute.
    8. Lars Osberg & Andrew Sharpe, 2011. "Beyond GDP: Measuring Economic Well-Being in Canada and the Provinces, 1981-2010," CSLS Research Reports 2011-11, Centre for the Study of Living Standards.
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    Cited by:

    1. Jasmin Thomas & James Uguccioni, 2016. "Equality and Economic Security Take a Hit: The Index of Economic Well-Being for Selected OECD Countries, 1980-2014," CSLS Research Reports 2016-06, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Household Production; OECD;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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