Huong Nguyen Thu: What are the drivers of the Swedish sustainable development path? New evidence from Bayesian Dynamic Linear Models

Abstract 
In this paper, we use Swedish Genuine Savings (GS) indicators, extended to account for a wider range of impacts on natural and human capital than previous GS indicators, to study Swedish long-term sustainability. Following Ferreira et al (2008) and Greasley et al (2014), technological progress and population effect are also included in the GS measures. We introduce a new quantitative methodology to the literature on sustainable development by applying Bayesian analysis of Dynamic Linear Models (DLMs) to GS indicators. This is the first time that parameter uncertainty has been used in examining the links between GS and long term well-being, providing new empirical evidence on the driving forces that underpin Swedish sustainable development.