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Freedom-Based Measurement of Living Standard

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  • Nicolas Gravel
  • Benoît Tarroux

Abstract

This paper contrasts conventional real GDP and price indicators of living standard, interpreted as revealing information on welfare, with others, that aim at reflecting individual freedom. It is argued that freedom-based indices are easier to use and interpret than traditional real GDP ones. Illustrations of the differences between the two classes of indices are provided for international comparisons, as well as for the evaluation of growth and inflation in France.

Suggested Citation

  • Nicolas Gravel & Benoît Tarroux, 2011. "Freedom-Based Measurement of Living Standard," Annals of Economics and Statistics, GENES, issue 101-102, pages 37-69.
    • Handle: RePEc:adr:anecst:y:2011:i:101-102:p:37-69
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    File URL: http://www.jstor.org/stable/41615473
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    References listed on IDEAS

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    1. Prasanta K. PATTANAIK & Yongsheng XU, 1990. "On Ranking Opportunity Sets in Terms of Freedom of Choice," Discussion Papers (REL - Recherches Economiques de Louvain) 1990036, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Yongsheng Xu, 2004. "On ranking linear budget sets in terms of freedom of choice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 22(1), pages 281-289, February.
    3. Sen, Amartya, 1988. "Freedom of choice : Concept and content," European Economic Review, Elsevier, vol. 32(2-3), pages 269-294, March.
    4. Deschamps, Robert & Gevers, Louis, 1978. "Leximin and utilitarian rules: A joint characterization," Journal of Economic Theory, Elsevier, vol. 17(2), pages 143-163, April.
    5. Candeal, J. C. & Indurain, E., 1995. "Homothetic and weakly homothetic preferences," Journal of Mathematical Economics, Elsevier, vol. 24(2), pages 147-158.
    6. Sen, Amartya, 1991. "Welfare, preference and freedom," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 15-29, October.
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    Cited by:

    1. Vincent Merlin & Marc Fleurbaey & Dominique Lepelley, 2012. "Introduction to the special issue on new developments in social choice and welfare theories," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 253-257, July.

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