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UK Real National Income, 1950-1998: Some Grounds for Optimism

Published online by Cambridge University Press:  26 March 2020

Nicholas Crafts*
Affiliation:
London School of Economics, Department of Economic History

Abstract

It has been claimed using the concept of the Index of Sustainable Economic Welfare (ISEW) that there has been an absolute decline in sustainable living standards in the UK since the mid-1970s. Revisions to ISEW are proposed to make it more nearly a measure of utility-based real national income. In particular, ISEW should be revised to take account of much-improved life expectancy. Implementing any of the suggested revisions reverses the finding of absolute decline while implementing all of them results in a growth rate higher than that of real GDP per head in the national accounts.

Type
Articles
Copyright
Copyright © 2002 National Institute of Economic and Social Research

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Footnotes

This paper was originally prepared for the conference, ‘Why Economic Growth? The meaning and measurement of GDP’, Kingston University, August 2001. I have gained from criticism by the participants. I am grateful to Eric Neumayer for helpful comments and access to his data. An anonymous referee made helpful suggestions that improved an earlier draft. I am solely to blame for all errors.

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