Beyond GDP and Back: What is the Value-Added by Additional Components of Welfare Measurement?

31 Pages Posted: 9 Feb 2011

See all articles by Sonja C. Kassenboehmer

Sonja C. Kassenboehmer

Monash University - Centre for Health Economics

Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen); Ruhr-Universität Bochum (RUB); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)

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Date Written: February 2011

Abstract

Building on the Stiglitz report, a growing literature suggests to explore other aspects of human welfare apart from material well-being, such as job security, crime, health, environmental factors and subjective perceptions. To explore the additional information of these indicators, we analyze data on the macro level from the German Federal Statistical Office combined with micro level data from the German SOEP (1991-2008). Much of the variation in many well-being measures can indeed be captured well by GDP and the unemployment rate. These correlations are far from perfect, thus giving considerable hope that there is room for a broader statistical reporting.

Keywords: beyond GDP, happiness, Sen, Stiglitz, sustainability, welfare measurement

JEL Classification: D60, E01, I30

Suggested Citation

Kassenboehmer, Sonja C. and Schmidt, Christoph M., Beyond GDP and Back: What is the Value-Added by Additional Components of Welfare Measurement? (February 2011). CEPR Discussion Paper No. DP8225. Available at SSRN: https://ssrn.com/abstract=1758434

Sonja C. Kassenboehmer (Contact Author)

Monash University - Centre for Health Economics ( email )

Building 75, 15 Innovation Walk
Monash University
Clayton, Victoria 3800
Australia

Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen) ( email )

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Essen, 45128
Germany
++49 201 8149-227 (Phone)
++49 201 8149-236 (Fax)

Ruhr-Universität Bochum (RUB)

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Universitätsstr. 150
D-44780 Bochum
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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