Template-Type: ReDIF-Paper 1.0
Author-Name: Arthur Grimes
Author-X-Name-First: Arthur
Author-X-Name-Last: Grimes
Author-Email: arthur.grimes@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Sean Hyland
Author-X-Name-First: Sean
Author-X-Name-Last: Hyland
Author-Email: sean.hyland@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Title: A New Cross-Country Measure of Material Wellbeing and Inequality: Methodology, Construction and Results
Abstract: This paper advances a new framework for defining a country’s material wellbeing based on the distribution of consumer durables, building on the recent material wellbeing literature that calls for an increased focus on both the level and the distribution of consumption and wealth. Our framework is demonstrated using household-level data from the OECD PISA surveys, from which triennial metrics are constructed consistently for 40 countries since 2000. Comparisons with income-based alternative metrics suggest that our consumption-based measure captures important aspects of material wellbeing at both the micro and the macro level. Differences between the two approaches is shown to be associated with life-cycle smoothing, an important aspect that should be captured in material wellbeing estimates. 
Length: 76 pages
Creation-Date:  2015-07
File-URL: https://motu-www.motu.org.nz/wpapers/15_09.pdf
Number: 15_09
Classification-JEL: D31, D63, I31, O57
Keywords: Material wellbeing, quality of life, national accounts, cross-country analysis, distributions, inequality, household durables.
Handle: RePEc:mtu:wpaper:15_09