Welfare Production and Quality of Life

  • Michael DauderstädtEmail author
Part of the International Handbooks of Quality-of-Life book series (IHQL)


Welfare comprises much more than market income and the goods and services bought by it. Traditional indicators such as the market-based Gross Domestic Product fail to reflect this multidimensionality as they exclude household production, leisure and the use or conservation of (global) commons. Four sectors (Market-oriented private enterprises, government, households and the social economy) produce welfare. Their relative weight changes in the course of economic development and due to shifting preferences and to structural change driven by heterogeneous productivity growth. Markets are subject to crises and show severe deficits as welfare optimizers by neglecting external effects and the inequality of market participants. These deficits require a stronger role of the state which must provide a broad range of social services given the inequality of income and the relative saturation with private goods and services. Globalization can contribute to the growth and welfare of poorer countries but tends to exacerbate within-country inequality. The welfare of future generations requires not less debt, but investment in the global capital stock including education, less exploitation of planetary resources, and population control.


Welfare Growth Productivity Structural change Inequality Informal economy Household production 


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© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Verlag J.H.W. Dietz Nachf. GmbHBonnGermany

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