Per capita income

Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

As a measure of prosperity

Per capita income is total resources/total population.

Per capita income is often used to measure an area's average income. This is used to compare the wealth of one population with those of others. Per capita income is often used to measure a country's standard of living. It is usually expressed in terms of a commonly used international currency such as the euro or United States dollar, and is useful because it is widely known, is easily calculable from readily available gross domestic product (GDP) and population estimates, and produces a useful statistic for comparison of wealth between sovereign territories. This helps to ascertain a country's development status. It is one of the three measures for calculating the Human Development Index of a country.

Per capita

Per capita is a Latin prepositional phrase: per (preposition, taking the accusative case, meaning “by, by means of”) and capita (accusative plural of the noun caput, “head”). The phrase thus means “by heads” or “for each head”, i.e., per individual/person. The term is used in a wide variety of social sciences and statistical research contexts, including government statistics, economic indicators, and built environment studies.

It is commonly and usually used in the field of statistics in place of saying “for each person” or “per person”. It is also used in wills to indicate that each of the named beneficiaries should receive, by devise or bequest, equal shares of the estate. This is in contrast to a per stirpes division, in which each branch (Latin stirps, plural stirpes) of the inheriting family inherits an equal share of the estate.

See also

References

Per Capita

Per Capita is an independent progressive Australian think tank. The think tank was launched on 11 April 2007 by Will Marshall of the US Progressive Policy Institute and Patrick Diamond of the UK’s Policy Network.

Philosophy

As a progressive, centre-left think tank, Per Capita's approach is to view the role of government as a market designer: setting parameters for a liberal economy to produce better social outcomes.

Per Capita's thinking draws on market design theory, full-cost economics, behavioural economics, and political philosophy.

Impact

Per Capita is recognised as a leading think tank of the centre-left in Australia, with a more centrist orientation than counterparts such as the Australia Institute and the Centre for Policy Development. An observer has noted that the think tank has influenced thinking about economic reform within the Gillard government.

Research program

Per Capita's research concerns have included long-term economic reform, the philosophy of tax, climate change, wellbeing and quality of life, population policy, energy and gas, and neuroscience.