A pragmatic approach to evaluate alternative indicators to GDP

The serious economic crisis broken out in 2008 highly stressed the limitations of GDP used as a well-being indicator and as a predictive tool for economy. This induced the need to identify new indicators able to link the economic prosperity of a country to aspects of sustainable development and externalities, both positive and negative, in the long run. The aim of this paper is to introduce a structured approach which supports the choice or the construction of alternative indicators to GDP. The starting point is the definition of what a well-being indicator actually should represent according to the Recommendations of the Stiglitz-Sen-Fitoussi Report on the measurement of economic performance and social progress. Then the paper introduces a systematic procedure for the analysis of well-being indicators. The different phases of this procedure entail the checking of indicators technical properties and their effect on the representational efficacy. Finally, some of the most representative well-being indicators drawn from the literature are compared and a detailed application example is propose

The Environmental Paradox of the Welfare State: The Dynamics of Sustainability

Thus far, there has been a reluctance to instigate a dialogue and engage with the tensions between two literatures with significant insights for each other. The first is the literature on the fiscal sustainability of welfare states, which is invariably predicated upon future growth primarily to manage demographic changes. The second is the post-growth literature, which has enjoyed a renaissance in recent years due to an environmental critique of economic growth. Both literatures contain implications for the analysis of welfare state sustainability. The primary contribution of this paper will be to explore the intractability of the tensions between these discourses and the difficulty of mapping out a progressive policy direction in the twenty-first century which meets both our environmental and social sensibilities. It is claimed that in the post-industrial world the fiscal sustainability of welfare capitalism is dependent upon public expenditure financed indirectly an environmentally unsustainable growth dynamic, but that ironically any conflagration of public welfare programmes is likely to be counter-productive as the welfare state is able to promote de-carbonisation strategies and notions of the public good as well as promoting monetarily and ecologically efficient public welfare services

Welfare Economics : Five Introductory Essays

229p.; 19cm

Introduction to normative economics

xxi+548hlm.;23c