|Project name:||VGR-Indikatoren - Potentials for extending National Income Accounts by integrating Sustainable Development Indicators|
|Project team:||Claudia Kettner|
|Bundesministerium für Wirtschaft und Arbeit|
|Duration:||Aug. 2005 - Dec. 2006|
Searching for adequate measures of economic prosperity has been a persistent theme since the very beginning of reasoning about the design of economic activity and the aims of economic policy making.
There is an intimate relationship between our conceptual understanding of the economy - the prevailing paradigm - and the related measurements. As a consequence, if our understanding of the fundamental relationships that describe and drive an economy shifts, there is a need to improve and adjust the set of measures.
The dominant measure for economic activity, also widely used for judging the prosperity of an economy, is Gross Domestic Product (GDP) which for a number of reasons the measure can be misleading. The incompleteness of traditional National Income Accounts and the deficiencies of GDP as a core indicator in this accounting framework have stimulated efforts to find improved measures. The study tries to give an overview of these measures, both within and outside the traditional accounting systems.