Table of Contents
Economics Research International
Volume 2015, Article ID 678927, 7 pages
http://dx.doi.org/10.1155/2015/678927
Research Article

Real National Income Average Growth Rate: A Novel Economic Growth and Social Fair Evaluation Index

1Department of Economics, National Chi Nan University, No. 1, University Road, Puli, Nantou County 54561, Taiwan
2Department of International Tourism and Recreation, Hsing-Kuo University, No. 600, Section 3, Taijiang Boulevard, Annan District, Tainan, Taiwan

Received 4 September 2014; Accepted 12 December 2014

Academic Editor: João Ricardo Faria

Copyright © 2015 Chien Wei Wu and Wei Zhan Hung. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The purpose of this study is to propose a new economic index, namely, real national income average growth rate (RNIAGR), which measures the performance of economic growth with consideration for income distribution. This study also develops another new economic index, called five-scale real national income average growth rate (FSRNIAGR), which simplifies the calculation of RNIAGR. The merits of these new indexes are discussed to justify their efficacy. This paper also justifies the use of proposed index by showing that this index can actually measure the ordering of social welfare. To highlight the difference between this new index and the traditional ones, this paper compares the index with real economic growth rate using the data of Taiwan. In addition, this paper shows that when the real growth stagnates or even declines, this new index indicates that income distribution deteriorates.