Genuine savings and future well-being in Germany, 1850-2000
Genuine Savings (GS), also known as ‘net adjusted savings', is a composite indicator of the sustainability of economic development. Genuine Savings reflects year-on-year changes in the total wealth or capital of a country, including net investment in produced capita, investment in human capital, depletion of natural resources, and damage caused by pollution. A negative Genuine Savings rate suggests that the stock of national wealth is declining and that future utility must be less than current utility, indicating that economic development is non-sustainable (Hamilton and Clemens, 1999). We make use of data over a 150 year period to examine the relationship between Genuine Savings and a number of indicators of well-being over time, and compare the relative changes in human, produced, and components of natural capital over the period. Overall, we find that the magnitude of genuine savings is positively related to changes in future consumption, with some evidence of a cointegrating relationship. However, the relationships between genuine savings and infant mortality or average heights are less clear.
|Date of creation:||Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012.
"Sustainability and the measurement of wealth,"
Environment and Development Economics,
Cambridge University Press, vol. 17(03), pages 317-353, June.
- Greasley, David & Hanley, Nicholas & McLaughlin, Eoin & Oxley, Les & Warde, Paul, 2012. "Testing for long-run "sustainability": Genuine Savings estimates for B ritain, 1760-2000," Stirling Economics Discussion Papers 2012-05, University of Stirling, Division of Economics.
- Richard H. Steckel, 1995. "Stature and the Standard of Living," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1903-1940, December.
- Susana Ferreira & Kirk Hamilton & Jeffrey R. Vincent, 2008. "Comprehensive Wealth and Future Consumption: Accounting for Population Growth," World Bank Economic Review, World Bank Group, vol. 22(2), pages 233-248, May.
- Blum, Matthias, 2013. "The influence of inequality on the standard of living: Worldwide anthropometric evidence from the 19th and 20th centuries," Economics & Human Biology, Elsevier, vol. 11(4), pages 436-452.
- Sophia Twarog, 1997. "Heights and Living Standards in Germany, 1850-1939: The Case of Wurttemberg," NBER Chapters, in: Health and Welfare during Industrialization, pages 285-330 National Bureau of Economic Research, Inc.
- Dasgupta, Partha & M Ler, Karl-G Ran, 2000. "Net national product, wealth, and social well-being," Environment and Development Economics, Cambridge University Press, vol. 5(01), pages 69-93, February.
- Matthias Blum, 2013. "War, food rationing, and socioeconomic inequality in Germany during the First World War," Economic History Review, Economic History Society, vol. 66(4), pages 1063-1083, November.
- Hartwick, John M, 1977.
"Intergenerational Equity and the Investing of Rents from Exhaustible Resources,"
American Economic Review,
American Economic Association, vol. 67(5), pages 972-74, December.
- John Hartwick, 1976. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," Working Papers 220, Queen's University, Department of Economics.
- Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
- repec:cup:cbooks:9780521882026 is not listed on IDEAS
- Lindmark, Magnus & Acar, Sevil, 2013. "Sustainability in the making? A historical estimate of Swedish sustainable and unsustainable development 1850–2000," Ecological Economics, Elsevier, vol. 86(C), pages 176-187.
- John Komlos & Peter Kriwy, 2001.
"The Biological Standard of Living in the Two Germanies,"
CESifo Working Paper Series
560, CESifo Group Munich.
- John Komlos & Peter Kriwy, 2003. "The Biological Standard of Living in the Two Germanies," German Economic Review, Verein für Socialpolitik, vol. 4, pages 459-473, November.
- Komlos, John & Kriwy, Peter, 2003. "The Biological Standard of Living in the two Germanies," Discussion Papers in Economics 55, University of Munich, Department of Economics.
- Mark Harrison, 1988. "Resource mobilization for World War II: the U.S.A., U.K., U.S.S.R., and Germany, 1938-1945′," Economic History Review, Economic History Society, vol. 41(2), pages 171-192, 05.
- Gnègnè, Yacouba, 2009. "Adjusted net saving and welfare change," Ecological Economics, Elsevier, vol. 68(4), pages 1127-1139, February.
- Baten, Jorg & Wagner, Andrea, 2003.
"Autarchy, market disintegration, and health: the mortality and nutritional crisis in Nazi Germany, 1933-1937,"
Economics & Human Biology,
Elsevier, vol. 1(1), pages 1-28, January.
- Jörg Baten & Andrea Wagner, 2002. "Autarchy, Market Disintegration, and Health: The Mortality and Nutritional Crisis in Nazi Germany, 1933-1937," CESifo Working Paper Series 800, CESifo Group Munich.
- Pezzey, J.C.V.John C. V., 2004. "One-sided sustainability tests with amenities, and changes in technology, trade and population," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 613-631, July.
- Kirk Hamilton & Cees Withagen, 2007. "Savings growth and the path of utility," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 703-713, May.
- Baten, Jorg & Murray, John E., 2000. "Heights of Men and Women in 19th-Century Bavaria: Economic, Nutritional, and Disease Influences," Explorations in Economic History, Elsevier, vol. 37(4), pages 351-369, October.
- Samuel Fankhauser, 1994. "The Social Costs of Greenhouse Gas Emissions: An Expected Value Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 157-184.
- Blum, Matthias, 2011. "Government decisions before and during the First World War and the living standards in Germany during a drastic natural experiment," Explorations in Economic History, Elsevier, vol. 48(4), pages 556-567.
- Greasley, David & Hanley, Nick & Kunnas, Jan & McLaughlin, Eoin & Oxley, Les & Warde, Paul, 2014. "Testing genuine savings as a forward-looking indicator of future well-being over the (very) long-run," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 171-188.
- repec:cup:cbooks:9780521821759 is not listed on IDEAS
- David Greasley & Jakob B. Madsen, 2006. "Employment and Total Factor Productivity Convergence," Kyklos, Wiley Blackwell, vol. 59(4), pages 527-555, November.
- Weitzman, Martin L, 1997. " Sustainability and Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 1-13, March.
- repec:cup:cbooks:9780521708388 is not listed on IDEAS
- repec:cup:cbooks:9780521529167 is not listed on IDEAS
- Pezzey, John C.V. & Hanley, Nick & Turner, Karen & Tinch, Dugald, 2006. "Comparing augmented sustainability measures for Scotland: Is there a mismatch?," Ecological Economics, Elsevier, vol. 57(1), pages 60-74, April.
- Roderick Floud & Robert W. Fogel & Bernard Harris & Sok Chul Hong, 2011. "The Changing Body: Health, Nutrition, and Human Development in the Western World since 1700," NBER Books, National Bureau of Economic Research, Inc, number foge10-1, August.
- Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," World Bank Economic Review, World Bank Group, vol. 13(2), pages 333-56, May.
- Jonas Scherner, 2013. "‘Armament in depth’ or ‘armament in breadth’? German investment pattern and rearmament during the Nazi period," Economic History Review, Economic History Society, vol. 66(2), pages 497-517, 05.
- repec:cup:cbooks:9780521821742 is not listed on IDEAS
- Ritschl Albrecht & Spoerer Mark, 1997. "Das Bruttosozialprodukt in Deutschland nach den amtlichen Volkseinkommens- und Sozialproduktsstatistiken 1901-1995," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 38(2), pages 27-54, December.
- Greasley, David & Hanley, Nicholas & Kunnas, Jan & McLaughlin, Eoin & Oxley, Les & Warde, Paul, 2013. "Comprehensive investment and future well-being in the USA, 1869-2000," Stirling Economics Discussion Papers 2013-06, University of Stirling, Division of Economics.
When requesting a correction, please mention this item's handle: RePEc:stl:stledp:2013-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liam Delaney)
If references are entirely missing, you can add them using this form.