We try to build a macroeconomic index, that includes some non-market variables, to be compared to the traditional GDP. Over the last twenty years answers to the welfare accounting problem have been different. Economists have used dynamic optimisation to rigorously derive an index that can be...

We try to build a macroeconomic index, that includes some non-market variables, to be compared to the traditional GDP. Over the last twenty years answers to the welfare accounting problem have been different. Economists have used dynamic optimization to rigorously derive an index that can be...

We simulate the welfare effects of the Carbon-Energy Tax introduced in Italy at the beginning of 1999 which asks for smooth increases, over a number of years, in the prices of most fossil fuels. The welfare effects have been calculated using True Cost of Living index numbers and their parameters...