Prosperity, Sustainability and the Measurement of Wealth

Asia & the Pacific Policy Studies, Volume 3, Issue 2, pages 226-234, May 2016

Crawford School of Public Policy, The Australian National University

9 Pages Posted: 13 Jul 2016

Date Written: June 11, 2016

Abstract

Gross domestic product (GDP) and household income measures provide invaluable metrics of economic activity in an economy, but they tell us little about the sustainability of the economic trends. National wealth accounting can be utilised to determine the size of the underlying productive base, which provides insight into the sustainability of economic activities and indicates the potential for intergenerational well-being. An empirical methodology was developed to measure wealth and then used to analyse multiple Asian countries. A common theme found across the Asian countries was the depletion of natural capital (forests, minerals and energy) and the development of human and produced capital. A strong correlation between growth in GDP per capita and wealth per capita was also found, but there are instances of GDP growth and wealth growth having different signs.

Keywords: wealth accounting, sustainability, economic policy, intergenerational

Suggested Citation

Mumford, Kevin J., Prosperity, Sustainability and the Measurement of Wealth (June 11, 2016). Asia & the Pacific Policy Studies, Volume 3, Issue 2, pages 226-234, May 2016, Crawford School of Public Policy, The Australian National University, Available at SSRN: https://ssrn.com/abstract=2808305

Kevin J. Mumford (Contact Author)

Purdue University ( email )

West Lafayette, IN 47907-1310
United States
7654966773 (Phone)
7654967434 (Fax)

HOME PAGE: http://www.mgmt.purdue.edu/faculty/kjmumfor/home.asp

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