The Measurement of Augmented Wealth: Concepts, Methods and Results

Hybrid online and in-person event at Oesterreichische Nationalbank, Otto-Wagner-Platz 3, 1090 Vienna, Austria

Friday, 3 March 2023 | Start: 09:00 AM | End: 05:00 PM CET

Abstract

Measures of net worth, as they are used for the analysis of large household surveys like the Survey of Consumer Finances (SCF) and the Household Finance and Consumption Survey (HFCS), are typically defined as the sum of financial and real assets minus the value of outstanding debt. This concept is based on a definition of ?marketable wealth? as has been proposed by the OECD and other institutions. The recent years have, however, shown an increasing interest in the notion of ?augmented wealth?, i.e. a concept of wealth that also includes the present value of other, nonmarketable private or public entitlements. This refers, in particular, to the value of public pension entitlements (sometimes called ?social security wealth?), but potentially also to other elements like the entitlements to future health care benefits in the context of an income-based public health insurance system or the implicit subsidies due to social housing programs. The existence of these additional components of augmented wealth is likely to have an important impact on crucial economic decisions like saving, labor supply, and retirement. The aim of this workshop is to bring together leading researchers in this field in order to discuss the methods for constructing augmented wealth, to compare existing findings and to talk about challenges and open practical and conceptual issues.