Measuring Economic Sustainability and Progress

672 Pages·2014·2.976 MB·English

by  Dale W. Jorgenson, J. Steven Landefeld, Paul Schreyer

Measuring Economic
Sustainability and Progress
Studies in Income and Wealth
Volume 72
National Bureau of Economic Research
Conference on Research in Income and Wealth
Measuring Economic
Sustainability and Progress
Dale W. Jorgenson, J. Steven Landefeld,
Edited by
and Paul Schreyer
The University of Chicago Press
Chicago and London
Dale W. Jorgenson is the Samuel W. Morris University Professor
in the Department of Economics at Harvard University. J. Steven
Landefeld is director of the Bureau of Economic Analysis at the US
Department of Commerce. Paul Schreyer is deputy chief statistician
at the Organisation for Economic Co- operation and Development.
The University of Chicago Press, Chicago 60637
The University of Chicago Press, Ltd., London
© 2014 by the National Bureau of Economic Research
All rights reserved. Published 2014.
Printed in the United States of America
23 22 21 20 19 18 17 16 15 14 1 2 3 4 5
ISBN- 13: 978- 0- 226- 12133- 8 (cloth)
ISBN- 13: 978- 0- 226- 12147- 5 (e- book)
DOI: 10.7208/chicago/9780226121475.001.0001
Library of Congress Cataloging- in- Publication Data
Measuring economic sustainability and progress / edited by Dale W.
Jorgenson, J. Steven Landefeld, and Paul Schreyer.
pages cm — (Studies in income and wealth ; volume 72)
“This volume contains revised versions of most of the papers and
discussions presented at the Conference on Research in Income and
Wealth entitled ‘Measuring Economic Sustainability and Progress,’
held in Cambridge, Massachusetts, on August 6–8, 2012.”—
Prefatory note.
ISBN 978- 0- 226- 12133- 8 (cloth : alkaline paper) —
ISBN 978- 0- 226- 12147- 5 (e- book) 1. Economics—Measurement—
Congresses. 2. Economics—Statistical methods—Congresses.
3. Economic development—Measurement—Congresses.
I. Jorgenson, Dale W. (Dale Weldeau), 1933– editor. II. Landefeld,
J. Steven, editor. III. Schreyer, Paul, editor. IV. Series: Studies in
income and wealth ; v. 72.
HB135.M426 2014
338.9'27—dc23
2013040583
o This paper meets the requirements of ANSI/NISO Z39.48- 1992
(Permanence of Paper).
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Contents
Prefatory Note xi
Introduction 1
Dale W. Jorgenson, J. Steven Landefeld,
and Paul Schreyer
1. Economic Measurement 17
Ben S. Bernanke
I. Expanded Measures of Economic Sustainability and Welfare:
Retrospect and Prospect
2. Expanded Measurement of Economic Activity:
Progress and Prospects 25
Katharine G. Abraham
3. Measuring Social Welfare in the US National
Accounts 43
Dale W. Jorgenson and Daniel T. Slesnick
4. Household Production, Leisure, and
Living Standards 89
Paul Schreyer and W. Erwin Diewert
5. Representing Consumption and Saving without
a Representative Consumer 115
Christopher D. Carroll
vii
viii Contents
II. Reconciling Administrative and Survey Data on the
Distribution of Income and Wealth
6. Integration of Micro- and Macrodata on
Consumer Income and Expenditures 137
Clinton P. McCully
7. Trends in the Distribution of Household
Income, 1979–2010 181
Edward Harris and Frank Sammartino
8. Accounting for the Distribution of Income
in the US National Accounts 213
Dennis Fixler and David S. Johnson
9. Analysis of Wealth Using Micro- and
Macrodata: A Comparison of the Survey of
Consumer Finances and Flow of Funds
Accounts 245
Alice M. Henriques and Joanne W. Hsu
III. Integrated Economic Accounts
10. The Integrated Macroeconomic Accounts of
the United States 277
Marco Cagetti, Elizabeth Ball Holmquist,
Lisa Lynn, Susan Hume McIntosh,
and David Wasshausen
11. A Prototype BEA/BLS Industry- Level
Production Account for the United States 323
Susan Fleck, Steven Rosenthal,
Matthew Russell, Erich H. Strassner,
and Lisa Usher
12. Toward the Development of Sectoral
Financial Positions and Flows in a
From- Whom- to- Whom Framework 373
Manik Shrestha
IV. M easuring Sustainability: The Environment, Human Capital,
Health, and Innovation
13. Toward the Measurement of Net Economic
Welfare: Air Pollution Damage in the US
National Accounts—2002, 2005, 2008 429
Nicholas Z. Muller
Contents ix
14. Human Capital Accounting in the United States:
Context, Measurement, and Application 461
Michael S. Christian
15. Measuring the Stock of Human Capital for
International and Intertemporal Comparisons 493
Gang Liu
16. Developing a Framework for Decomposing
Medical- Care Expenditure Growth: Exploring
Issues of Representativeness 545
Abe Dunn, Eli Liebman,
and Adam Hale Shapiro
17. Experimental Measures of Output and
Productivity in the Canadian Hospital Sector,
2002 to 2010 575
Wulong Gu and Stéphane Morin
18. Innovation Accounting 595
Carol A. Corrado and Charles R. Hulten
Panel Remarks 629
J. Steven Landefeld
Shirin Ahmed
John W. Ruser
Adelheid Burgi- Schmelz
Contributors 643
Author Index 647
Subject Index 653