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Building Indicators for Inclusive Growth and its Sustainability: What Can the National Accounts Offer and How Can They Be Supplemented?

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  • Didier Blanchet
  • Marc Fleurbaey

Abstract

[eng] How can the national accounts be linked to the objective of obtaining an inclusive measurement of growth, integrating distributional issues and all determining factors of well-being, in both the short and long term? The accounts offer measurements of real income that have undeniable connections with the quantification of current well-being, but they ignore the non-monetary factors of such well-being and they do not allow for evaluation of its sustainability. We present a way of dealing with the first limitation, the notion of equivalent income. It fits well with the accounts approach, it has relatively strong normative justifications and it lends itself well to the micro-macro bridging exercises needed to evaluate inequalities. Creating overall measurements of sustainability seems much more problematic, as it is impossible to do so without projection models that go far beyond the framework of current statistical output.

Suggested Citation

  • Didier Blanchet & Marc Fleurbaey, 2020. "Building Indicators for Inclusive Growth and its Sustainability: What Can the National Accounts Offer and How Can They Be Supplemented?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 9-24.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_2
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2020
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    References listed on IDEAS

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    Cited by:

    1. Didier Blanchet, 2020. "What Should the Concept of Domestic Production Mean in Globalized Economies?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 205-214.
    2. J.-M. Germain, 2020. "A Welfare Based Estimate of “Real Feel GDP” for Europe and the USA," Documents de Travail de l'Insee - INSEE Working Papers g2020-03, Institut National de la Statistique et des Etudes Economiques.

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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