aggregation of happiness based on surveysdoesnt include GDP Human Development

Aggregation of happiness based on surveysdoesnt

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-aggregation of happiness based on surveys—doesn’t include GDP - Human Development Index (HPI)-convetion measure of output/gross income per capita, % of population graduated HS, avg life expectancy - Happy Planet Index -survey of happiness, life expectancy, natl eco footprint - Genuine Progress Indicator —Uses GDP and then add values of leisure, measure of income distribution, and others INFLATION Inflation % change in price level two types: 1 based on market baskets (CPI/PPP) 2.based on NIPA (implicit GDP deflator, PCE) CPI (inflation rate) market basket period, identify market basket of consumption for typical urban family of 4, select a reference period (base year), CPI= (value of basket in current year/value of basket in ref. period)x100 Value of CPI in base year is 100 Uses: 1-express historical prices/dollar values in terms of current dollars/vice versa, 2- index a dollar payment to maintain purchasing power during inflation periods (social security, wages) gives highest inflation rate because it is not chain-weighted (substitution bias) and it only includes about 200 goods when the PCE and GDPD include many more goods to find $ of one year in another year $ value ($ in Z year) x CPI A year/CPI Z year CPI-U -consumer price index for all urban consumers C-CPI-U- chain weight CPI for urban consumers CPI-W - CPI for urban wage earners and clerical workers CORE CPI- U without food+energy prices Substitution Bias (Outlet bias) -households buy cheaper goods when prices of market basket
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