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THE LEVY INSTITUTE MEASURE OF ECONOMIC WELL-BEING UNITED STATES, 1989-2001

INTRODUCTION

Economic well-being refers to the household's command over, and access to, the goods and services produced in a modern market economy during a given period of time. The magnitude of the command or access that can be exercised by the household is approximated by an income measure, since household income should, in principle, reflect the resources available to the household for facilitating current consumption or acquiring assets. Traditionally, household money income is used as a measure that reflects such command.

Our aim in this paper is to propose a new measure of economic well-being. Gross money income (MI), the most widely used measure of economic well-being in the United ...

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