Beyond Income and Wealth

21 Pages Posted: 14 May 2015

See all articles by Marc Fleurbaey

Marc Fleurbaey

Princeton University - Woodrow Wilson School of Public and International Affairs

Date Written: June 2015

Abstract

This paper proposes four criteria for the selection of a better measure of living standards: it should be comprehensive, correlation sensitive, preference based, and fairness based. These criteria are applied to the following measures: income, equivalent income, capabilities, and satisfaction. The paper then explores the relationship between the space of goods and services, the space of budgets, and the more fundamental space of the aspects of life that people really care about. The importance of the fairness principles guiding interpersonal comparisons is highlighted.

Keywords: capabilities, equivalent income, fairness, happiness, income, preferences, satisfaction, values, wealth

JEL Classification: D61, D71

Suggested Citation

Fleurbaey, Marc, Beyond Income and Wealth (June 2015). Review of Income and Wealth, Vol. 61, Issue 2, pp. 199-219, 2015. Available at SSRN: https://ssrn.com/abstract=2605265 or http://dx.doi.org/10.1111/roiw.12187

Marc Fleurbaey (Contact Author)

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

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