A General Approach to Welfare Measurement through National Income Accounting

We have benefited from discussions with Kenneth Arrow and Martin Weitzman. We also thank Finn Førsund, Lawrence Goulder, Peter Hammond, Geoffrey Heal and David Miller as well as three anonymous referees for helpful comments. An earlier version was circulated under the title "Progress, Sustainability, and Comprehensive National Accounting". Asheim appreciates the hospitality of the research initiative on The Environment, the Economy and Sustainable Welfare at Stanford University, where much of this work was done. We gratefully acknowledge financial support from the Hewlett Foundation through the above‐mentioned research initiative (Asheim), CESifo Munich (Asheim) and the Research Council of Norway (Ruhrgas grant, both authors)