Does NNP Growth Indicate Welfare Improvement?

  • Geir B. Asheim
  • Martin L. Weitzman
Part of the Sustainability, Economics, and Natural Resources book series (SENR, volume 3)

We show that instantaneous increases in real NNP over time are an accurate indicator of true dynamic welfare improvements. This highlights a connection between the theory of green (or comprehensive) national income accounting and the theory of real price indices.


Real Interest Rate Welfare Improvement Real Prex Nominal Prex National Income Accounting 
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Copyright information

© Springer 2007

Authors and Affiliations

  • Geir B. Asheim
    • 1
  • Martin L. Weitzman
    • 2
  1. 1.Department of EconomicsUniversity of OsloBlindernNorway
  2. 2.Department of EconomicsHarvard University Littauer CenterCambridgeUSA

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