Editing Genuine progress indicator (section)

==Calculation==

The calculation of GPI presented in the simplified form is the following:

GPI = A + B - C - D + I

A is income weighted private consumption

B is value of non-market services generating welfare

C is private defensive cost of natural deterioration

D is cost of deterioration of nature and natural resources

I is increase in capital stock and balance of international trade

The GPI indicator is based on the concept of sustainable income, presented by economist John Hicks (1948).  The sustainable income is the amount a person or an economy can consume during one period without decreasing his or her consumption during the next period. In the same manner, GPI depicts the state of welfare in the society by taking into account the ability to maintain welfare on at least the same level in the future.