Summary: Based on the analysis of 40 years worth of economic data, the Prosperity Index measures national prosperity combining the latest life satisfaction measures with material wealth indicators.
Main Points: The Prosperity Index is divided into eight sub-indices, each of which has been identified as a foundation of prosperity. Each sub-index is constructed using econometric analysis to determine what increases both per capita income and life satisfaction of a country’s citizens.
· Economy: Which factors in a nation’s economy are associated with higher levels of per capita income? Which economic conditions are linked to higher levels of wellbeing?
· Entrepreneurship & Opportunity: What are the characteristics of a society that encourages citizens to be entrepreneurial, innovative, and seek opportunities that are related to higher levels of income and wellbeing?
· Governance: What are the government institutions and types of government functions that are related to higher per capita income and higher levels of wellbeing?
· Education: Which aspects of an educational system are linked to higher per capita income through their contribution to human capital, and which elements in a learning environment relate to higher levels of wellbeing?
· Health: What are the characteristics of a healthy society that are linked to higher levels of income? How does personal wellbeing beneﬁt from physical and mental health-related factors?
· Safety & Security: How does the personal safety of citizens and the national security of a nation relate to growth in per capita income and higher levels of wellbeing?
· Personal Freedom: Does freedom of expression, belief, association, and personal autonomy promote higher income and wellbeing? And does tolerance of immigrants and minorities affect prosperity?
· Social Capital: What kinds of social networks, relationships, and institutions are associated with higher levels of wellbeing and national income?
Access to database: http://www.prosperity.com/
Source: Methodology and Technical Appendix, The 2012 Legatum Prosperity Index, 2013, http://www.prosperity.com/
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