Beyond Gdp

A new global comparison of standards of livingMANY people complain that conventional measures of GDP fail to capture a country’s true standard of living. But their attempts to improve on these conventional metrics are ad hoc. In a new paper* Charles Jones and Peter Klenow of Stanford University propose a new measure of standards of living based on a simple thought experiment: if you were reborn as a random member of another country, how much could you expect to consume, in goods and leisure, over the course of your life?

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