Measuring Socioeconomic Effects When Using Income as Quality of Life Indicator |
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| Authors: | Maw Lin LeeBen-chieh Liu |
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| Institution: | Maw Lin Lee, Ph.D., is professor of economics, University of Missouri Columbia, 118 Professional Building, Columbia, MO 65211;Ben-chieh Liu, Ph.D., is professor of management, marketing and information systems, Chicago Stale University, Chicago, IL 60532. |
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| Abstract: | Abstract . By generalizing Stigler and Becker's idea of maintaining the “capital stock intact,” and incorporating it with other contributions to welfare economic analysis, this paper presents a modified conceptual framework for measuring and adjusting impacts of socioeconomic and environmental factors when income or consumption expenditure is used solely as a quality of life indicator. Such measurements and adjustments are made for differences in public needs and in the process of satisfying these needs. Application of this conceptual framework is illustrated, using statistics on police protection and crime rates. |
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