Author: Shunsuke Managi, Kyushu University
An index which gives insights into the prospects of the region in which one resides has been proposed. Known as the Inclusive Wealth Index, it is a simple index showing in monetary units how the well-being and happiness of future generations can be secured. The Inclusive Wealth Index is the outcome of the United Nations (UN)’ wealth measurement project. It adds together produced capital, education capital, health capital, and natural capital, and is adjusted by total factor productivity (TFP), which reflects damage caused by climate change, capital gains stemming from rising crude oil prices, and technological advancement.
Read the entire article on the RIETI website.