HI GPI – SOCIAL COSTS
Social Costs (- SC)
GPI = U(PCE_ADJ + PP + KB + KS + KH – SC + KN – POL – DKN)
where PCE_ADJ = (PCE – DEFR – HI – CDE)*INQ
Captures Social Costs (-SC) that result from economic activity but reduce overall welfare, such as homeless/houselessness, underprovided labor hours, commuting time, or damage from crimes.
Social Costs Sub Indicators:
An undesirable social outcome largely due to housing market failures; multiplies an estimated cost of homeless/houselessness (shelters, public services, health care, etc.) per capita by number of houseless individuals.
Represents the lost welfare when people want to work more but the labor market does not provide opportunities; uses estimates of annual unprovided hours per underemployed worker, underemployment rates, and wage rates.
Calculates the negative social and economic impacts of crime on individuals and households (e.g., trauma, fear, physical damage) using U.S. Department of Justice estimates of costs per type of crime; assumes that other costs, such as incarceration, are borne by the government.
Social costs from vehicle accidents can include property damage, lost household production, travel delay, etc. Standard economic measurement systems do not account for motor vehicle crashes as costs; in fact the side effects could be misconstrued as a positive economic gain.
Estimates both the direct and indirect expenses of commuting. The direct, or out-of-pocket expenses relate to the money spent to operate a vehicle or for fare on a bus or other public transportation. The indirect costs are associated with loss of time while commuting, time that could have been spent on other, more enjoyable or productive activities.