Benefits of the digital economy are evident in everyday life, but there are significant concerns that these benefits may not be appropriately reflected in official statistics. The measurement of the net benefits of new and disappearing products depends on what type of price index the statistical agency is using to deflate final demand aggregates. We...

In this consultancy report for the PC, Erwin Diewert and Denis Lawrence of Meyrick and Associates identify and implement improvements in practical welfare measurement beyond the conventional average income or GDP per capita measure, and gauge the welfare contributions of productivity and the terms of trade.