International Comparisons of Trends in Economic Well-being

This paper develops a new measure of economic well-being for selectedOECD countries for the period 1980 to 1996 and compares trends in thisnew Index to GDP per capita. We argue that the economic well-being ofa society depends on the level of average consumption flows, aggregateaccumulation of productive stocks, inequality in the distribution ofindividual incomes and insecurity in the anticipation of future income.However, the weights attached to each component will vary, dependingon the values of different observers. We argue that public debatewould be improved if there is explicit consideration of theaspects of economic well-being obscured by average income trends andif the weights attached to these aspects were made visible and wereopen for discussion.