Abstract
This chapter considers two central problems in the measurement of wealth, within the existing statistical frameworks, which impair both the ability to assess economic sustainability and the impacts of an economic downturn. These measurement problems have, in turn, led to confusion concerning the interpretation to be given to the dramatic increase in the wealth-output ratio in recent decades.
Paper presented at a special session of the International Economic Association World Congress, Dead Sea, Jordan, June, 2014 sponsored by the OECD. I am deeply indebted to the other members of the panel—Gonzalo Hernandez Licona, Francois Bourguignon, and Martine Durand—and to Martin Guzman for their insightful comments, and also to Jun Huang, Leo Lijum Wang, Ruoke Yang and Feiran Zhang for research assistance. Financial assistance from INET and the Roosevelt Institute Inequality Project, and support by the Ford, McArthur, and Bernard and Irene Schwartz foundations are gratefully acknowledged.
University Professor, Columbia University.
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Stiglitz, J.E. (2016). The Measurement of Wealth: Recessions, Sustainability and Inequality. In: Stiglitz, J.E., Guzman, M. (eds) Contemporary Issues in Macroeconomics. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137529589_8
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DOI: https://doi.org/10.1057/9781137529589_8
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