The problem of defining and measuring sustainable income
The standard way to measure economic success is by measuring economic growth, as the sole goal of the economic policy based on the principles of neoclassical economics. Growth, together with the enlargement of the material base, is inevitable in order to increase employment and provide preconditions...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Novi Sad - Faculty of Economics, Subotica
2018-01-01
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| Series: | Anali Ekonomskog fakulteta u Subotici |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2018/0350-21201839019P.pdf |
| _version_ | 1819049933187055616 |
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| author | Petrov Viktorija Trivić Nada |
| author_facet | Petrov Viktorija Trivić Nada |
| author_sort | Petrov Viktorija |
| collection | DOAJ |
| description | The standard way to measure economic success is by measuring economic growth, as the sole goal of the economic policy based on the principles of neoclassical economics. Growth, together with the enlargement of the material base, is inevitable in order to increase employment and provide preconditions for development and technological advancement. Conventional indicators of the economic performance, such as a net national product, reflect consumption rather than sustainable income, as it determines the amount that can currently be used, without reducing the stock of capital. Conventional net national product or Hicks income will underestimate sustainable income in a model with explicit knowledge as a form of capital. When knowledge, not validated by the market, as a type of capital stock, is not included in capital accumulation accounts, sustainable income will vary even from the most accurately measured net national product. |
| first_indexed | 2024-12-21T11:40:01Z |
| format | Article |
| id | doaj.art-369da7dd4e54451f9b0abb0038aa7940 |
| institution | Directory Open Access Journal |
| issn | 0350-2120 2683-4162 |
| language | English |
| last_indexed | 2024-12-21T11:40:01Z |
| publishDate | 2018-01-01 |
| publisher | University of Novi Sad - Faculty of Economics, Subotica |
| record_format | Article |
| series | Anali Ekonomskog fakulteta u Subotici |
| spelling | doaj.art-369da7dd4e54451f9b0abb0038aa79402022-12-21T19:05:20ZengUniversity of Novi Sad - Faculty of Economics, SuboticaAnali Ekonomskog fakulteta u Subotici0350-21202683-41622018-01-0120183919310350-21201839019PThe problem of defining and measuring sustainable incomePetrov Viktorija0https://orcid.org/0000-0001-6216-9715Trivić Nada1https://orcid.org/0000-0002-3469-3322Univerzitet u Novom Sadu, Ekonomski fakultet u Subotici, SuboticaUniverzitet u Novom Sadu, Ekonomski fakultet u Subotici, SuboticaThe standard way to measure economic success is by measuring economic growth, as the sole goal of the economic policy based on the principles of neoclassical economics. Growth, together with the enlargement of the material base, is inevitable in order to increase employment and provide preconditions for development and technological advancement. Conventional indicators of the economic performance, such as a net national product, reflect consumption rather than sustainable income, as it determines the amount that can currently be used, without reducing the stock of capital. Conventional net national product or Hicks income will underestimate sustainable income in a model with explicit knowledge as a form of capital. When knowledge, not validated by the market, as a type of capital stock, is not included in capital accumulation accounts, sustainable income will vary even from the most accurately measured net national product.https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2018/0350-21201839019P.pdfincomesustainable incomehicksian incomeknowledge as a capital |
| spellingShingle | Petrov Viktorija Trivić Nada The problem of defining and measuring sustainable income Anali Ekonomskog fakulteta u Subotici income sustainable income hicksian income knowledge as a capital |
| title | The problem of defining and measuring sustainable income |
| title_full | The problem of defining and measuring sustainable income |
| title_fullStr | The problem of defining and measuring sustainable income |
| title_full_unstemmed | The problem of defining and measuring sustainable income |
| title_short | The problem of defining and measuring sustainable income |
| title_sort | problem of defining and measuring sustainable income |
| topic | income sustainable income hicksian income knowledge as a capital |
| url | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2018/0350-21201839019P.pdf |
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