Thread by @KevinSimler

TIL: There are better metrics than GDP per capita for gauging the material living conditions within a country.

AIC = Average Individual Consumption
AHDI = Average Household Disposable Income

randomcriticalanalysis.com/2018/11/19/why…

Here, for example, are a bunch of welfare indicators correlated against both GDP per capita (x-axis) and AIC (y-axis).

Clearly AIC does a better job of reflecting these other indicators:

Maybe this is common sense, but I’ve always been lazy and just used GDP per capita for my (admittedly off-the-cuff) analyses.