Households, Goods, and Well‐being

Household economies translate goods into well‐being through production, co‐operation, and distribution. Between market goods to households and well‐being to persons, value is added. Income is a measure of goods, consumption well‐being is measured by equivalent income. An absolute interpretation of equivalent income is argued as the value to persons of consumption well‐being after household economies. Guidance is suggested on the choice of equivalence scales, and for the measurement of well‐being and inequality.