Fed paper presents new way to measure consumer welfare
Consumer preferences change in line with incomes, researcher argues
Consumer welfare was higher in 1955 than 2019, finds a researcher at the Federal Reserve Bank of New York.
Danial Lashkari argues that traditional measures of wellbeing and welfare do not account for the differences in consumer preference observed across income levels. Lashkari’s paper measures wellbeing using income and household-level inflation data.
He ties household consumption to the basket of goods and services associated with each household’s income. “Households choose different baskets
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