14 October 2008J.-E. Chapron - Insee1 OECD Working Party On National Accounts Paris, 14 – 16 October 2008 Commission on the Measurement Of Economic Performance.

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Presentation transcript:

14 October 2008J.-E. Chapron - Insee1 OECD Working Party On National Accounts Paris, 14 – 16 October 2008 Commission on the Measurement Of Economic Performance And Social Progress (CMEPSP) An Update

14 October 2008J.-E. Chapron - Insee2 The “Stiglitz Commission” Commissioned by President Sarkozy Chair: Joseph E. Stiglitz Chair Adviser: Amartya Sen Coordinator: Jean-Paul Fitoussi + 24 high level experts Secretariat: 8 rapporteurs from Insee, OECD, the French Economic Observatory (Observatoire Français des Conjonctures Économiques - OFCE)

14 October 2008J.-E. Chapron - Insee3 General aspects of work Not confined to France, nor to developed countries Transparency, contact with civil society Cooperation with OECD, Eurostat, UN Statistics Division, and national statistical offices Concrete “exercises” to ascertain feasibility, and to provide an estimate of the empirical significance (France, USA, others?)

14 October 2008J.-E. Chapron - Insee4 Main issues What are the limits of GDP as an indicator of economic performance and social progress? What additional information is needed? What is the most appropriate presentation of this information? Is it feasible now? Tomorrow? Later?

14 October 2008J.-E. Chapron - Insee5 Three main directions of study Classical GDP issues: Making best use of the current conceptual framework plus investigating possible extensions Sustainable development and environment Quality of life: Measurement of social progress taking into account broader perspectives on wellbeing  Three permanent working groups

14 October 2008J.-E. Chapron - Insee6 Classical GDP issues (1) From GDP to adjusted net real disposable income per consumption unit Median versus mean income per consumption unit Volume and prices for health, education and other non-market services Unpaid homework

14 October 2008J.-E. Chapron - Insee7 Classical GDP issues (2) Capital gains/losses and income Assessment of security, public versus private insurance schemes “Defensive expenditures” What about leisure? More about inequalities ?

14 October 2008J.-E. Chapron - Insee8 Sustainable development and environment (1) Two aspects: Impact of environment on current wellbeing Sustainability of our management of nature and exhaustible resources: impact on future well-being Inter-related but treated separately

14 October 2008J.-E. Chapron - Insee9 Sustainable development and environment (2) How does environment (e.g. air and water quality) contribute to current wellbeing (directly/indirectly)? Impact of market failures on monetary measures of sustainability Exploration of alternative metrics for valuing environmental changes

14 October 2008J.-E. Chapron - Insee10 Sustainable development and environment (3) Resource depletion and environmental degradation in “green” GDP or Net National Income Net Adjusted Savings: conceptual and measurement issues – Use of special metrics The international dimension

14 October 2008J.-E. Chapron - Insee11 Quality of life (1) Distinction between ends and means to a good life, i.e., aspects (good in themselves) and determinants (means of obtaining other elements that have intrinsic value) of quality of life

14 October 2008J.-E. Chapron - Insee12 Quality of life (2) Aspects of quality of life Hedonic experiences Evaluative judgements Capabilities

14 October 2008J.-E. Chapron - Insee13 Quality of life (3) Determinants of quality of life Personal activities Personal safety Social environment Institutional environment Natural environment

14 October 2008J.-E. Chapron - Insee14 Quality of life (4) Crosscutting issues Measuring inequality in quality of life How to combine information across domains of quality of life?

14 October 2008J.-E. Chapron - Insee15 Schedule of work April 2008: 1st plenary meeting (Paris) 25 July 2008: Issues paper 6–8 November 2008: 2 nd plenary (New York), draft interim report January 2009: 3 rd plenary (Paris), revised interim report, planning of final report End-April 2009: 4 th plenary, final report

14 October 2008J.-E. Chapron - Insee16 For further information … Commission’s website: