Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

Inclusive growth, narrowly defined in this paper as growth that helps reduce inequality, is achieved if consumption of the poor increases faster than consumption of the rich. The paper presents a simple accounting framework for a per-percentile consumption diagnostics that could inform...

An informal model is described that leads to multiple macroeconomic equilibria as a consequence of random variation in the relative amounts of technological change for new and existing goods. The novel observation is that the rate of introduction and market penetration of new goods vis-a-vis...

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

Keynes (1936) offers two different definitions of income. This paper proves that his expenditure definition of income is negative. When the double-entry method helps change the Keynesian negative amount into positive, it abets the crime!

Is it possible to forecast using poorly measured data? According to the permanent income hypothesis, a low personal saving rate should predict rising future income (Campbell, 1987). However, the U.S. personal saving rate is initially poorly measured and has been repeatedly revised upward in...

The natural capital concept is generating broad interest that extends well beyond economists. Economics has a long history of applying capital theory to natural resources. However, measurement of the value of ecosystems has mostly focused on income flows rather than valuing stocks of natural...

Der traditionelle Indikator für die Messung des wirtschaftlichen Wohlstands eines Landes ist das Bruttoinlandsprodukt (BIP). Das BIP misst jedoch nicht das Einkommen, dass die Bürger eines Landes in der übrigen Welt erzielen. Die im Ausland erzielten Einkommen werden durch das...

This paper examines long-term trends in aggregate wealth and inheritance and in their distributions, focusing on developed economies. A key stylized fact is that wealth is less equally distributed than income. Financial assets predominate among the wealthy, while owner-occupied housing is...

For more than fifty years, the Solow decomposition (Solow 1957) has served as the standard measurement of total factor productivity (TFP) growth in economics and management, yet little is known about its precision, especially when the capital stock is poorly measured. Using synthetic data...