Strategic Perspectives on the Genuine Progress Indicator and Gross Domestic Product

Abstract

Traditionally, the status of an economy has been measured regarding its real output. The most popular yardstick for this figure is the gross domestic product. Gross Domestic Product, however, does not take into account many more complex elements of economic welfare. Efficient and accurate measurement of the status of an economy is central to furthering economic sustainability. This paper seeks to investigate the advantages and disadvantages of one such well-being measure, the Genuine Progress Indicator, compared to the use of traditional Gross Domestic Product as a measure of economic activity.