ABSTRACT
This chapter introduces the basic idea and methodology behind the Inclusive Wealth Index (IWI). It presents the central results and findings resulting from inclusive wealth calculations, based on non-parametric computation of shadow prices for human capital. The chapter shows parallel results, which employ former methods for human capital calculation, consistent with the traditional interpretation of the rate of return on education and the Inclusive Wealth Report 2014 results. It explains some limitations of the current methodology and addresses some concerns and potential criticisms of IWI in general. The chapter examines the countries' sustainability conditions over the past 25 years by calculating human capital, including both education and health shadow prices, using the frontier approach. It discusses the wealth stock of nations by sources. The chapter provides the performance of IW, after considering several factors. It looks at the breakdown of the contributions of each capital asset group to total inclusive wealth average growth rates.
