Comprehensive Wealth and Future Consumption:

Economic theory predicts that the current change in national wealth, broadly defined to include natural and human capital as well as produced capital ("genuine savings"), determines whether the present value of future changes in consumption is positive or negative. Theoretical research has...

Full description

Bibliographic Details
Main Authors:	Ferreira, Susana, Hamilton, Kirk, Vincent, Jeffrey R.
Format:	Journal Article
Published:	World Bank 2012
Subjects:	consumption development economic performance economic theory human capital investment natural resources savings value wealth
Online Access:	http://hdl.handle.net/10986/4478

id	okr-10986-4478
recordtype	oai_dc
spelling	okr-10986-44782021-04-23T14:02:18Z Comprehensive Wealth and Future Consumption: Ferreira, Susana Hamilton, Kirk Vincent, Jeffrey R. consumption development economic performance economic theory human capital investment natural resources savings value wealth Economic theory predicts that the current change in national wealth, broadly defined to include natural and human capital as well as produced capital ("genuine savings"), determines whether the present value of future changes in consumption is positive or negative. Theoretical research has focused on the effects of population growth on this relation, but no rigorous empirical investigation has been conducted. Panel data for 64 developing countries during 1970–82 are used to test the effects of three adjustments for population growth, including one that controls for omitted wealth. Although the adjustments have substantial impacts on estimates of genuine savings, they lead to only limited improvements in the relation between those estimates and subsequent consumption changes. Even without adjustments for population growth, adjustments for natural resource depletion improve the relation significantly. Policymakers and economists can interpret published estimates of genuine savings as signals of future consumption paths if and only if the estimates include adjustments for natural resource depletion. But better estimates of capital stocks are needed before it can be confidently said that adjustments for population growth significantly improve the accuracy of those signals. 2012-03-30T07:12:37Z 2012-03-30T07:12:37Z 2008-05-30 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/4478 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article East Asia South Asia New Zealand Burma
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	consumption development economic performance economic theory human capital investment natural resources savings value wealth
spellingShingle	consumption development economic performance economic theory human capital investment natural resources savings value wealth Ferreira, Susana Hamilton, Kirk Vincent, Jeffrey R. Comprehensive Wealth and Future Consumption:
geographic_facet	East Asia South Asia New Zealand Burma
description	Economic theory predicts that the current change in national wealth, broadly defined to include natural and human capital as well as produced capital ("genuine savings"), determines whether the present value of future changes in consumption is positive or negative. Theoretical research has focused on the effects of population growth on this relation, but no rigorous empirical investigation has been conducted. Panel data for 64 developing countries during 1970–82 are used to test the effects of three adjustments for population growth, including one that controls for omitted wealth. Although the adjustments have substantial impacts on estimates of genuine savings, they lead to only limited improvements in the relation between those estimates and subsequent consumption changes. Even without adjustments for population growth, adjustments for natural resource depletion improve the relation significantly. Policymakers and economists can interpret published estimates of genuine savings as signals of future consumption paths if and only if the estimates include adjustments for natural resource depletion. But better estimates of capital stocks are needed before it can be confidently said that adjustments for population growth significantly improve the accuracy of those signals.
format	Journal Article
author	Ferreira, Susana Hamilton, Kirk Vincent, Jeffrey R.
author_facet	Ferreira, Susana Hamilton, Kirk Vincent, Jeffrey R.
author_sort	Ferreira, Susana
title	Comprehensive Wealth and Future Consumption:
title_short	Comprehensive Wealth and Future Consumption:
title_full	Comprehensive Wealth and Future Consumption:
title_fullStr	Comprehensive Wealth and Future Consumption:
title_full_unstemmed	Comprehensive Wealth and Future Consumption:
title_sort	comprehensive wealth and future consumption:
publisher	World Bank
publishDate	2012
url	http://hdl.handle.net/10986/4478
_version_	1764391539617824768

Comprehensive Wealth and Future Consumption:

Similar Items