Questions tagged [gdp]
Gross Domestic Product (GDP) is a flow measure of the value of finished goods and services produced within a country's borders in a specific time period. GDP is typically calculated on an annual basis.
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Macroeconomics - Does GDP undervalue government produced goods and services? [closed]
I have thought of this problem and after searching it appears a similar question is asked here (apparently spawned by a debate on twitter), but I'm afraid the top reply doesn't fully resolve the issue....
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Is GDP relative to CPI?
Assume some country has an increase of GDP (gross domestic product, PIB is spanish) of +3% in some time interval and an increase of CPI (consumer price index, IPC in spanish) of +4% in same interval. ...
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is there any specific way to convert a country's gdp to us dollars?
I need to convert Indonesia's real/constant GDP(rupiah) base year 2010 to USD. is it like basic convert using exchange rate based on the year I look for? or is there other way?
I am concerned with the ...
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Can a financial institution's headquarters location misrepresent service sector GDP in other regions?
In calculating GDP using the output approach, can a financial institution's headquarters location misrepresent the service sector's contribution to GDP in other regions?
For example, imagine a ...
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How to explain the productivity paradox?
When a country is 4 times richer than another (per capita), it is reasonably to say that an average worker of the poorer country takes one hour to finish a job, which is done by an average worker of ...
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Why are sales taxes added in the income approach to GDP
In the income approach to GDP:
Y = p + w + dep + ib.tax
where p, w, dep, and ib.tax are profits, wages, depreciation, and indirect business taxes respectively.
Profits and wages are straightforward, ...
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Is there a formalization of the 'broken windows fallacy' that discriminates wasteful economic activity from useful?
If I pay someone €100 to dig a hole, and they pay me €100 to fill it back up, GDP will (seemingly) grow by €200, making this seem good for the economy.
"Aha!" says the economist, "that'...
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Can global real GDP be calculated using nominal GDP and inflation rate? If so what is the error?
I am attempting to calculate (in R) the global real GDP using what I assume is the nominal GDP from the World Bank and what I can only identify as the inflation rate, also from the World bank.
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How does Turkey have higher labour productivity than Portugal and Romania but lower GDP per capita PPP?
I avoided using nominal GDP per Capita because of Lira devaluation.
Here is the labour productivity of Turkey, Portugal, Romania and some other countries (2022)
https://data.oecd.org/lprdty/gdp-per-...
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How to transform real GDP in LCU to USD?
Let's suppose Suriname's constant GDP is SRD 15.1 billion in 2022. I'm not sure of the year's constant prices because the source does not specify it (https://data.worldbank.org/indicator/NY.GDP.MKTP....
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Why is only the expenditure approach of GDP taught in economics courses?
If you look at the major economics textbook at the undergraduate level the only GDP formula that is provided usually is the expenditure approach formula i.e. C+I+G+NX. However in the course of work or ...
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GDP concept - intermediate goods
In the following 2 cases, what are the impacts on GDP of year N and year N+1? What about the impacts on expenditure side, income side and product side?
A baker buys 10 dollars of wheat flour on 31/12/...
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Can GDP ever be negative?
Imagine that in an economy we only produced a toy and that cost us 10 dollars. We don’t sell this toy in year 1. Then this goes under Investment as +10 and GDP is +10. But say the only thing we do in ...
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What is the name of the principle "GDP=Production=Income=Expenditure"?
Wikipedia says
GDP can be determined in three ways, all of which should, theoretically, give the same result. They are the production (or output or value added) approach, the income approach, and the ...
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Finding the equilibrium interest rate
Let's say there are only two countries in the entire world, Argentina and Chile, and there is free trade between them. The aggregated investments in both countries are $I^A$ and $I^C$ that are both ...
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Controlling for Log population with Log GDP per Capita outcome in OLS
Bartlett and Partnoy (BP) (2020) show that OLS with natural log dependent variables that are ratios must include the ln(denominator) on the RHS or they must assume that the numerator and denominator ...
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How does the sum of a chain linked prices series for the chain linked year equal exactly the sum of the same year of the current prices series
Above are the current prices GDP and chained 2015 prices GDP for South Korea
The chained 2015 prices figures for each quarter don't match the current prices series for the period of 2015 (the chain ...
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What is the meaning of "Nominal GDP was converted to 2021 dollars using the GDP Price Index" in ERP 2023?
Reading the Economic Report of The President 2023, there is a note under the real GDP graph stating: "Nominal GDP was converted to 2021 dollars using the GDP Price Index"
What I understand ...
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For my bachelors, would it make sense to use C+G (as Consumption + Government Expenditure) as an indicator for the prosperity of the economy?
Because G is also really just consumed by the people, wouldn´t it make sense to measure all the things that people consume to measure the prosperity of an economy?
At the end of the day, people in an ...
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Can GDP still rise if no new products are invented and if no new money is printed?
If no new type of consumer product is invented this year compared to last year and no new money is printed this year (i.e. the same quantity of money exists in the economy as last year), under what ...
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Intermediate/used goods and GDP
I am new to macroeconomics and I had some questions about GDP when we say that it does not take into account intermediate goods. Therefore, a company X that only sells car parts to car brands like ...
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Confusion in the relationship between GNDI and GNI
GNDI- Gross National Disposable Income; GNI- Gross National Income
We know that GNDI = GNI + Net Current Transfers from ROW(rest of world).
What I don't understand is why is there no mention of direct ...
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Would a GDP measure be improved by excluding foreign interest paid?
The income method of calculating GDP is as follows:
GDP = wages + profits + rents + interest + depreciation + taxes + NFFI.
If an economy has high external debt, for instance, because it used external ...
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is Waste picker value added count in GDP?
Is the value added by waste pickers included in GDP calculations? For example, if an old washing machine that has been discarded by an individual is sold by waste pickers, does the entire sale price ...
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Is the GDP artificially increased by repeatedly buying and selling the same product?
One way to calculate the GPD (Gross Domestic Product) of a country is essentially adding up all spending by the country in a year (individuals, governament and companies).
Let us know consider this ...
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Clarification on GDP comparisons
I am not an economist, and I hope my question isn't inappropriate. I have seen various posts on social media spreading the news that the BRICS bloc surpassed the G7 in terms of PPP-adjusted GDP. ...
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Real GDP data for India
I am having quite a bit of trouble finding data on India's GDP in REAL terms.
I would appreciate it if someone knew a website/database that might have this information.
Thanks :)
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Why isn't Net Worth Change of a country used to calculate its economic power, as opposed to GDP?
As I understand, GDP is the sum of market values of final goods and services produced in a country in a year.
Let me define Net Wealth Change or NWC as the difference between a country’s net worth at ...
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Samsung's contribution to South Korea's GDP
Many articles or sources mention that Samsung's contribution to South Korea GDP is approximately 20%.
Checking its financial statements in 2022 for example, I see that the revenues amount to 234 ...
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Why are final services sold internally (to residents) accounted for in a country’s GDP?
My understanding is that many pure services result in no direct creation of global wealth, but only in a transfer of wealth.
Here I mean wealth in an economics sense as the sum of goods and ...
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data on the quarterly and monthly world economic growth
I would be extremely grateful if you could assist me in acquiring access to dependable and current data regarding global economic growth or GDP growth rates, both at the quarterly and monthly levels. ...
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Using aggregate GDP per capita and regional and local population stats to calculate its GDP
If I have range of data with aggregate GDP per capita and population data (not only on a national level, but also regional and local level). Can I use this aggregate GDP per capita to calculate the ...
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Why do some news say China’s economy is bad yet still predicting its 2023 growth to be around 5 per cent?
I saw many news articles saying the Chinese economy is not in a good state, e.g. Banks cut 2023 GDP growth forecast from around 5.5 to 5. If the US economy grows by 5% it will be regarded as a “...
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China interest rates
"the PBoC said it would keep interest rates below the nominal GDP growth rate as a way of maintaining debt sustainability. But this only makes debt "sustainable" by implicitly ...
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How an annual rate of 1.1 percent in the first quarter of 2023 is calculated on the website of bea.gov
The table 1 says
Real gross domestic product (GDP) increased at an annual rate of 1.1 percent in the first quarter of 2023
(table 1),
1.1 percent is derived from Real GDP
They are on the Right Hand ...
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Measuring value added per capita technique (Macroeconomics)
I am reading this paper, and in the methods section, the authors define manufacturing value added per capita as, "For example, manufacturing value added per capita is equivalent to manufacturing ...
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why does world bank show Ukraine's GDP ROSE ~25% from 2020 to 2021?
The world bank shows UKraine's GDP on a tear, in dollar terms, from 2016 onwards. Specifically, between 2020 and 2021, Ukraine's GDP went up from USD 156Bn to USD 200Bn, a roughly 25% increase. The ...
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Why inflation doesn’t cool down economy by itself?
In the short run, wouldn’t you expect that an increase in (the rate of?) inflation leads to a decrease in GDP and thus inflation decreasing again. Like a self-correcting mechanism.
My motivation comes ...
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Is money we make completely taken away by taxes?
In my opinion, any money we make will be completely taken away by taxes. Here is my logic.
When I earn some money (x), I have to give some as tax to the government. ...
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How do I rebase this NDP per capita data?
So i got two different data sets that I want to put together, one is from 2004-05 to 2014-15 with the base year 2004-05 and the other one is 2011-12 to 2021-22 with base year 2011-12. I have also ...
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Retail component of imported good in GDP?
If I buy a bottle of French wine at a wine shop - how does this add to GDP?
The imported (wholesale) bottle of wine does not count towards GDP; but the markup from the import price that I pay to the ...
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Convert UN Data Table 2.3 to USD (Output, gross value added, and fixed assets by industries at current prices, ISIC Rev. 3)
How (un) reasonable is to take the ratio of GDPs in local currency over GDPs in USD to convert http://data.un.org/Data.aspx?d=SNA&f=group_code%3A203 to current USD?
I have looked for a version un ...
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A tax-to-GDP ratio of 100% or more
Is it possible that a country's tax-to-GDP ratio reaches 100% or more, let's say with a land value tax. And what would it imply? That all incomes would be spent on paying taxes?
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How can debt be larger than gdp? [closed]
government is taking debt because they spend it all at once and pay it over time so if you spend all at once there will be increase in gdp(multiple increase in gdp as money changes hands multiple ...
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Finance becomes part of GDP - David Harvey claim
David Harvey claimed that the work of financiers shifted to be included in the calculation of national productivity in the 1970s. Previous to this, Harvey claims that finance was excluded from GDP ...
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Debt to income ratio
I live in Canada, and here the debt-to-income ratio is 1.83. I just want to be sure: is it really the after-tax monthly income divided by the total debt monthly payment? Because I don't understand how ...
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Imputed housing services of owner-occupied homes in GDP
I found a sentence from a macroeconomics textbook that says imputed housing services of owner-occupied homes are included as consumption in GDP.
Does that mean the estimated rent of my home will be ...
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How are trades performed on ships at sea factored into GDP calculations?
When a ship is less than $12$ nautical miles from a country's coast, it's in that country's domestic territory, however, on the high seas, it's in the country in which it's registered. So if a sale is ...
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"The GDP deflator reflects what's happening to prices not quantities." Is this true?
While looking at the GDP deflator this situation popped up that made me question the quote above from Mankiw Economics 5edition p446.
But if we do the maths, we can see that the GDP deflator for this ...
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How Demand of a product affects the currency
Question : Iron ore is Australia's largest export. Suppose that there was an unexpected increase in demand for Australia's iron ore exports globally. Explain what this would do to Australian Dollar ...
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