Robert Barro, 25 July 2019

GDP counts investment twice – when it occurs and when rental income results. This column proposes an amendment to the national accounting system that only includes investment once. This would ensure that national income accounts do not overstate the resources available for consumption. It also has major implications for the estimation of the capital share in income.

Eugenio Proto, Aldo Rustichini, 11 January 2014

The link between higher national income and higher national life satisfaction is critical to economic policymaking. This column presents new evidence that the connection is hump-shaped. There is a clear, positive relation in the poorer nations and regions, but it flattens out at around $30,000–$35,000, and then turns negative.

Markus Brückner, Mark Gradstein, 24 February 2013

Whereas existing literature has documented strong correlations between national incomes and measures of schooling attainment, causality has been hard to pin down. Much of empirical work had tended to interpret these correlations as implying an effect of human capital on national income, but recent calibrated models have argued that most of the link works, in fact, the other way around. This paper takes a close look as to whether income growth causes schooling from an empirical perspective.

Events

CEPR Policy Research