INDEX OF ECONOMIC WELL-BEING: A PROPOSAL FOR THE BRAZILIAN STATES

Abstract

The objective of this study was to build an Index of Economic Well-Being (IEWB) for the Brazilian federation units, considering the years 2002 and 2008. Specifically, we determine the levels of economic well-being and their sub-components. The proposed index was composed of four distinct dimensions: "Consumption Flows", "Real Wealth – Intergenerational Legacy", "Equity" and "Economic Security". The main results demonstrated that, independently of the weights attributed in the index, Santa Catarina was the Brazilian state that revealed the highest economic well-being in relation to the others. On the other hand, Alagoas was the worst state. Considering the necessity to construct a synthetic measure to determine the economic well-being and in face of the importance of economic indicators in the implementation and monitoring of public policy, the IEWB demonstrated to be capable to measure more adequately the distinguished aspects associated with a decent standard of living.The objective of this study was to build an Index of Economic Well-Being (IEWB) for the Brazilian federation units, considering the years 2002 and 2008. Specifically, we determine the levels of economic well-being and their sub-components. The proposed index was composed of four distinct dimensions: "Consumption Flows", "Real Wealth – Intergenerational Legacy", "Equity" and "Economic Security". The main results demonstrated that, independently of the weights attributed in the index, Santa Catarina was the Brazilian state that revealed the highest economic well-being in relation to the others. On the other hand, Alagoas was the worst state. Considering the necessity to construct a synthetic measure to determine the economic well-being and in face of the importance of economic indicators in the implementation and monitoring of public policy, the IEWB demonstrated to be capable to measure more adequately the distinguished aspects associated with a decent standard of living.