Measures of wealth and well-being. A comparison between GDP and ISEW

TitleMeasures of wealth and well-being. A comparison between GDP and ISEW
Publication TypeWorking Paper
Year of Publication2010
AuthorsV. Carta, M. Porcu
Number2010_06
Keywordscorrective measures, gdp, isew, well-being
Abstract

It is well known that, as a measure of well-being, the Gross Domestic Product does
not reflect the real wealth of a country but just its monetary counterpart. Thus, it is
not fit to differentiate between the costs that enhance welfare and those which,
instead, undermine it. For this reason some corrective measures of well-being have
been advanced in the literature, one of the most important is the so called Index of
Sustainable Economic Welfare. The aim of this work is to explore some of the
features of this measure and to calculate it for Italy up to year 2006 comparing it
with the time series of Gross Domestic Product. In particular our purpose is to
analyze whether the ISEW for Italy registered a decreasing trend as well as the
ISEW of other countries. This negative trend was not visible in the previous studies
because of the lack of recent data which could not allow to register the threshold
point of the index.

Citation Key2702
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