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Stiglitz-Sen-Fitoussi Commission
Report in 3 partsClassical GDP Issues deals with measuring material well-being in a system of national accountsQuality of life deals with measuring other dimensions well-being By way of introduction, a quick reminder about the nature of GDP
Classical GDP Issues - Material living standards
One dimension of well-being = material living standardsClassical GDP Issues in the report of the Commission deals with measuring material well-being in a system of national accountsBy way of introduction, a quick reminder about the nature of GDP
What GDP is …
GDP is: - A measure of aggregate economic activity
- Captures market and some non-market activities
- Measures the supply and demand of final products within ‘production boundaries
- Directly linked to supply side and jobs
- And correlated with many aspects of living standards, in particular in comparisons of very different groups of countries
…and what it is not
GDP is not: - A measure of current well-being – too many dimensions of well-being are not captured
- A direct measure of living standards
- A measure of sustainability of human activity of any kind
None of this is new and has long been recognised, first of all by national accountants
So what can be done?
Make more use of the wealth of existing measures in the national accountsDe-emphasise the role of the single indicator ‘GDP’Supplant core national accounts with satellite accounts Here are 5 more specific messages
Report in 3 partsClassical GDP Issues deals with measuring material well-being in a system of national accountsQuality of life deals with measuring other dimensions well-being By way of introduction, a quick reminder about the nature of GDP
Classical GDP Issues - Material living standards
One dimension of well-being = material living standardsClassical GDP Issues in the report of the Commission deals with measuring material well-being in a system of national accountsBy way of introduction, a quick reminder about the nature of GDP
What GDP is …
GDP is: - A measure of aggregate economic activity
- Captures market and some non-market activities
- Measures the supply and demand of final products within ‘production boundaries
- Directly linked to supply side and jobs
- And correlated with many aspects of living standards, in particular in comparisons of very different groups of countries
…and what it is not
GDP is not: - A measure of current well-being – too many dimensions of well-being are not captured
- A direct measure of living standards
- A measure of sustainability of human activity of any kind
None of this is new and has long been recognised, first of all by national accountants
So what can be done?
Make more use of the wealth of existing measures in the national accountsDe-emphasise the role of the single indicator ‘GDP’Supplant core national accounts with satellite accounts Here are 5 more specific messages
Paul Schreyer
Poste actuel: Directeur de la Statistique, OCDE
1979 — 1986: PhD en Economie
1986 — 1988: Chercheur à l'Institut de recherche économique Ifo
Poste actuel: Directeur de la Statistique, OCDE
1979 — 1986: PhD en Economie
1986 — 1988: Chercheur à l'Institut de recherche économique Ifo