Stanford University


New Measures Of The Digital Economy And Non-Market Production: Implications For GDP And Welfare



This project aims to develop a new measure of the production and welfare from household non-market activities which are absent in the conventional GDP. As people spend a significant proportion of time performing unpaid home activities for the purpose of production and leisure, the output of the production and the value of welfare are massive. Especially during the current digital economy, technologies are rapidly changing the nature of goods and the way of production. This project plans to conduct willingness-to-accept (WTA) and willingness-to-pay (WTP) experiments to obtain a full assessment of the total output and welfare of household production and free digital good consumption. The experiments will also adopt Bayesian Truth Serum (BTS) as the incentive structure to improve the truthfulness of the answers. With the new measure of the household production and welfare, we will also conduct research beyond the scope of GDP to further understand the effect of the digital technology on productivity at home, the gender gap of home activities, the implication of potential market, and the international comparison of economic development.

Related Research

Stanford University