Now that pollution is reaching worrisome levels in some countries and at the global level, there is a growing consensus that it needs to be explicitly considered as a by-product of the production process and incorporated in economic decisions. But this is not easy in the absence of markets and...

This paper presents a productivity growth measure that explicitly accounts for natural capital as an input factor and for undesirable goods, or “bads”, as an output of the production process. The discussion focuses on the extension of productivity measurement for bad outputs and estimates of...

This paper builds a welfare measure encompassing household disposable income, unemployment and longevity, while using two different sets of “shadow prices” for non-income variables. The valuations of vital and unemployment risks estimated from life satisfaction data (“subjective shadow...