UCL logo

UCL Discovery

UCL home » Library Services » Electronic resources » UCL Discovery

Measuring income and measuring sustainability

Pemberton, M; Ulph, D; (2001) Measuring income and measuring sustainability. SCAND J ECON , 103 (1) 25 - 40.

Full text not available from this repository.


We examine what interpretation can be given to inclusive income, understood to be consumption plus the value of the net increase in all relevant capital stocks. We introduce the concept of instantaneously constant value income, defined as the maximum amount the economy can consume at a moment of time and keep the expected present value of utility of current and future generations constant. We argue that this income concept captures some of the concerns underlying sustainability. Our main result is that inclusive income equals instantaneously constant value income. We show that this result holds in a very general setting and, in particular, carries over to models incorporating technological progress when such progress can be captured by augmented stocks of knowledge. An important implication of our main result is that it provides a very simple method for deriving inclusive income, which does not involve any linearization of the Hamiltonian.

Type: Article
Title: Measuring income and measuring sustainability
Keywords: national income accounting, sustainability, NET NATIONAL PRODUCT, WELFARE SIGNIFICANCE, ECONOMIES, RESOURCES
UCL classification: UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of SandHS > Dept of Economics
URI: http://discovery.ucl.ac.uk/id/eprint/17406
Downloads since deposit
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item