Measuring welfare, Avoid direct interpersonal comparisons: ethical problem if Government imputes a 'universal preference ordering' Assume heuristically that underneath 'we are all really alike' – our preference orderings are similar Use proxies for utility: ▫National income per capita (mean, median)  UN System of National Accounts from 1953 ▫Adjust for unemployment, inflation, inequality ▫Leisure time, household production ▫Pollution and environmental costs But if income growth is not broadly shared, or particular groups lose, then can't infer a Pareto gain.
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