Yale Bulletin and Calendar

March 16, 2001

Volume 29, Number 22

Economist will develop better way
to measure economic activity in U.S.

William D. Nordhaus, Sterling Professor of Economics, received a $1.3 million grant from The Glaser Foundation.

The foundation was established by Rob Glaser, founder and chief executive officer of RealNetworks, Inc. and a 1983 graduate of Yale College.

The grant supports a program on non-market accounts and will develop a prototype set of non-market accounts for the United States. The two-year grant is the leading edge of the foundation's program "Progress Definition and Measurement," which seeks to develop and implement better measurements for tracking the nation's progress and economic activity. The grant to Yale will launch an effort to improve measurement of those parts of economic and social activity that are outside the boundary of the marketplace. The effort will review existing studies, lay out a program for the next decade, describe and oversee collection of the necessary data, and oversee construction of the first prototype accounts.

Among the most important areas to be studied are improved measurement of the contribution of the environment, non-market use of time and the contribution of non-profit and volunteer activities, as well as research and education that take place outside profit-making organizations.

According to Glaser, "Limiting our national accounts to market transactions distorts them as a measure of economic activity and well-being. How we measure progress reflects our values and determines our goals as a society. If we are to build a better world in which to live, we must develop and adopt more accurate and meaningful measurements of progress and economic activity."

Nordhaus added, "This activity is essential to broadening our understanding of economic activity, because so much of what is important to our society takes place in near-market and non-market activities. Our economic measuring rod is defective because it omits many worthwhile activities that take place outside the market and includes many activities that do not truly contribute economic welfare to the population. We hope that a systematic program of research, data collection and construction of new measures can provide a fuller picture of the economic state of the nation."

Throughout his research career, Nordhaus has pioneered new approaches to the measurement of economic activity. In 1972, he and Nobel laureate James Tobin, Sterling Professor Emeritus of Economics, published "Measure of Economic Welfare," one of the first attempts to develop non-market accounts. From 1994 to 1999, Nordhaus chaired a panel of the National Academy of Sciences which reported on environmental accounting in "Nature's Numbers: Expanding the National Economic Accounts to Include the Environment."

The Glaser Foundation (www.glaserfoundation.org) awards grants to non-profit organizations working on new ways to define and measure progress. In addition, the foundation funds animal advocacy and socially-conscious media.

T H I SW E E K ' SS T O R I E S

Economist will develop better way to measure economic activity in U.S.

Yale SOM to establish database for study of world's financial history

F&ES to create industrial ecology program in Asia

Greene and Brisman awarded DeVane Medals

Professor Lane explains the economics of happiness

Scientist Thomas Steitz honored with Sterling Professorship

Goldman-Rakic is Eugene Higgins Professor of Neurobiology

Joan Steitz cited as outstanding woman scientist

Student actors 'take flight' in comic version of 'The Birds'

Exhibition examines photographers' contrasting images of Saarinen designs

'Faces of Hope' offers portraits of people living with HIV

Model urges students to take pride in their bodies

'Cities and Buildings' pays tribute to urban works . . .

Forum to explore fate of U.S. 'melting pot'

Discovery boosts understanding of hereditary blindness

Grants will support Yale researcher's study on how to quell the 'voices' . . .

Women under 60 more likely to die after heart attack, says study

Renowned nuclear physicist to discuss 'Science, Technology and Politics'

'A Taste of Inequality' explores issues still on feminist frontline

Love songs will be dramatized in workshops

New fund will support activities for teachers of religious studies

New ways of funding environmental enterprises to be examined

Film series focus on the banned and Brazilian

Innovation is focus of this year's Spring Teaching Forum

Annual Pride Week celebration will feature talks, comedy night and film

Campus Notes