From National Accounts to Inclusive Wealth: A Framework to Bridge Between Market and Accounting Priced Capitals

This paper proposes a framework, consistent with economic accounting principles, for the measurement of economic value in accounting (or “shadow”) prices. We build upon and utilise existing economic accounting frameworks based on market prices (such as national and environmental accounts), and in the process create a bridge between market and accounting price approaches. The framework proposed would allow measures of inclusive income and inclusive wealth – i.e. flow and stock measures of economic value which include the benefits from produced, human, and natural capital – to be calculated in accounting/shadow prices, vastly improving the usefulness of these concepts for the purposes of assessing economic welfare.