and how to evaluate those items included or excluded. For example, it is difficult to determine the opportunity cost or market value of house­ wives' service or the leisure taken by the unemployed or underemployed. Another difficulty is to deduct an appropriate amount for air pollution and traffic congestion arising from the use of automobiles. Should this amount be the cost of installing an anti-pollution device or should it compensate for discomfort experienced and include the cost of recover­ ing from pollution-inflicted illnesses? Is it realistic to exclude entirely defense spending from GNP? If not, what is a justifiable level of defense spending to include? In order for this new concept to replace that of national income, further theoretical and empirical refinements arc neces­ sary, to which social indicators could contribute by providing statistical bases for theoretical justification and actual estimations. 33 \V. Nordhaus and James Tobin, Is f:conomic Growth Obsolete? (New York,•Natiotul Bureau of Economic Rc~carch, 1972); A.W. Samctz, "Production of goods and scniccs: the measurement of economic growth", E.B. Shcldom and W.E. Moore, eds., Indicators of Social Oianges, Concepts and Measurement (New York, Russel Sage Foundation, 1968); and Economic Council of Japan, Measuring Net National ll'clfare of Japan (fokyo, 197 3). 49 ( c) Measuring standard of living at the subnational level 49. A number of attempts, in addition to applying the UNRISD method, to measure the standard of living at the subnational level have been made, often involving a large number of indicator series.34 The · fundamental methodological difference between the recent attempts and the earlier UNRISD approach concerns the derivation of weights given to the indicators used. The weights for specific indicato:-s are determined by factor analysis scores or by frequencies of responses in surveys of resi­ dents' values, perceptions, and preferences with regard to their living 
**Analysis**
The text discusses the challenges and complexities of measuring the standard of living and national income, including the difficulties in evaluating the value of non-market goods and services, such as household work and leisure time. It also touches on the issue of defense spending and the need for further refinements in measuring the standard of living. The text appears to be more focused on the theoretical and methodological aspects of measuring economic growth and development rather than specific sectors or industries.

**Category**
Economic development, Education