Published on 25 July 2019
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Measuring wealth, delivering prosperity

Wealth Economy Project: Natural and Social Capital
Interim Report to LetterOne

Publisher: Bennett Institute for Public Policy, University of Cambridge
Published: 25 July 2019
 
As the consequences of climate change, social tensions and high levels of inequality are increasingly evident, the Bennett Institute for Public Policy at the University of Cambridge has published its initial report for the Wealth Economy Project on how to improve economic measurement in order to guide effective economic policymaking.
 
This project is headed by Institute co-director Professor Diane Coyle.
 
WEALTH ECONOMY RESEARCH TEAM
Dimitri Zenghelis | Project Leader
Matthew Agarwala | Research Leader
Marco Felici | Research Assistant
Saite Lu | Research Assistant
Julia Wdowin | Research Assistant


The report recommends focusing on an alternative measurement framework based on the “wealth economy” rather than just GDP: wealth is determined by the access to a range of economic assets people need to fulfil their economic potential and the long-term capacity of the economy to deliver sustainable growth and improving living standards.
 
The forward-looking element of this new economic framework makes it a better indicator of sustainability in terms of the economy and society as well as the natural environment than annual output or GDP.
 
This ambitious framework requires measurement of access to six types of economic assets that add up to what is known as comprehensive wealth of the nation.
 
1.    Physical assets and produced capital, including access to infrastructure and to new technologies
2.    Net financial capital
3.    Natural capital, the resources and services provided by nature
4.    Intangible assets such as intellectual property and data
5.    Human capital, the accumulated skills and the physical and mental health of individuals
6.    Social and institutional capital

Authors

Diane Coyle 2018

Professor Diane Coyle

Bennett Professor of Public Policy

Professor Coyle co-directs the Institute with Professor Kenny. She is heading research under the progress and productivity themes. Biography Professor Diane Coyle is the Bennett Professor of Public Policy at...

Dimitri Zenghelis

Dimitri Zenghelis

Special Advisor: The Wealth Economy

Dimitri Zenghelis is a Senior Visiting Fellow at the Grantham Research Institute at the LSE where, from 2013-2017, he was Head of Climate Policy. In 2014 he was Acting Chief...

Matthew Agarwala

Dr Matthew Agarwala

Project Leader: The Wealth Economy

Matthew Agarwala, Economist, Bennett Institute for Public Policy, Cambridge. Matthew Agarwala is an economist interested in wealth-based approaches to measuring and delivering sustainability, wellbeing, and productivity. His research is motivated...

Saite Lu

Dr Saite Lu

Affiliated Researcher

Dr Saite Lu is a Senior Teaching Associate in Development Economics at the Faculty of Economics, University of Cambridge and an Affiliated Researcher at the Bennett Institute for Public Policy....

Marco Felici

Marco Felici

Marco is a PhD student at the Department of Land Economy and his research focuses on household finance, housing and well-being. He was previously a Research Assistant at the Bennett...

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