Transcript Stiglitz – why it doesn`t work

Report on Measurement
of Economic
Performance and Social
Progress
Australian Macroeconomic
Accounting perspective
Michael Davies, Australian Bureau of Statistics
SNA
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SNA includes a large set of analytical
measures (not just GDP):
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RGDI
Consumption
Household wealth
GDPANDRGDI, Chainvolumemeasures
%
2
1
0
–1
GDP
RGDI
S D M J
2004 2005
–2
S D M J
2006
S D M J S D M J S D M
2007
2008
2009
Quarter
GDPANDREALNETNATIONALDISPOSABLEINCOMEPERCAPITA,
Chainvolumemeasures
%change
2
1
0
–1
GDP
RNNDI per cap
S D M J
2004 2005
S D M J
2006
–2
–3
S D M J S D M J S D M
2007
2008
2009
Quarter
Measures of Australia's
Progress indicators
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Health
Education and Training
Work
Culture and Leisure
Family, community and
social cohesion
Crime
Democracy, governance
and citizenship
Communication
Transport
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National Income
Economic Hardship
National Wealth
Housing
Productivity
Competitiveness and
Openness
Inflation
The natural landscape
The air and atmosphere
Oceans and Estuaries
MAP
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Started 7 years ago
Now annual on website
Objective rather than subjective indicators
Provides statistics/ leaves judgement to
others
• Currently being refreshed
• Can be expanded on capital measures/
sustainability side
Household data
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There is rich microdata for household
income, consumption and wealth
Need to continue development of
comprehensive framework – much work
done, but decisions need to be made
Throws light on distribution/ inequalities
Rich and dense microdata – hard to fit with
aggregate measures e.g. SNA
The Report
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14 recommendations over 3 key themes:
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Income, consumption, wealth measurement
improvements (material well-being)
Construction of objective and subjective
indicators of well-being
Sustainability and environment measurement
improvements
NSO response
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As above, already much being done
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Continue to develop SNA, MAP,
household data
Ways ahead
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Integration of household microdata with
broader measures
Capital approach to sustainability
Time use as indicator
Proceed carefully/ measure the
measureable
NSO response
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Expand set of indicators while
maintaining credibility
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Avoid e.g happiness
Avoid single, GDP type measures for nonmonetary measures
Provide statistics – leave judgements to
others
NSO Response
• E.g develop coherent treatment of
retirement benefits and the way different
structures for delivering these impact
measures of income, consumption and
wealth.