Diane Coyle explains why GDP is an increasingly inappropriate indicator for the twenty-first-century economy
Professor of Economics at the University of Manchester
What is intangible wealth and what is its relation to TFP and future consumption? The panel discusses how to calculate residual capital, and what its relationship to tangible capital and economic growth is.
What are the key research questions around Wealth? Who are the key institutional actors in a coalition that might give rise to acceptance of Wealth as an indicator? The panelists discuss the way forward for Wealth Accounting.
Wealth is a stock, not a flow. The country with the highest flow of GDP in a particular year is not necessarily the richest country. The richest country has the highest capital stock, whether endowed or accumulated. While this should in theory be obvious, it is often ignored. A focus on wealth, and changes in wealth, would lead to attention to investment in important assets – whether natural, produced, human, institutional or financial – and sharper attention to sustainability. In this discussion, the panelists consider wealth accounts and policy implications.