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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29 views

Generally speaking, shouldn't GDP roughly increase equivalent to population growth?

With all things being equal: shouldn't the GDP roughly increase equivalent to population growth (as a minimum, setting aside GDP increases resulting from technology, education, and all other factors). ...
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GDP Deflator and Economics Well-Being

The question is regarding GDP deflator. nominal & real GDP 2015, and GDP Deflator; 800, 400, 200 nominal & real GDP 2014, and GDP Deflator; 400, 400, 100 As far as I understand the increase ...
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Origine of the GDP difference between WEO (IMF) and GEP (World Bank)

If one looks to the past world GDP growth from the "World Economic Outlook" of the International Monetary Fund and from the "Global Economic Prospect" of the World Bank one will systematically find 0....
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21 views

Name for a tax that captures all goods and services produced?

Is there a name for a consumption tax that basically captures the GDP (all goods and services produced in the nation)?
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17 views

Best way to measure company size relative to world GDP

I'm working o a model where corporate revenue / world GDP is a dependent variable of some stuff (based on the model proposed in this paper: http://www.scielo.br/scielo.php?pid=S1807-76922009000200002&...
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Autonomous spending

"The term $\left(c_{0}+IQ+G-c_{1}T\right)$ is that part of the demand for goods that does not depend on output here ($c_{1}$ is mpc)." Can someone please explain how will you interpret government ...
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Do mainstream economic models use the blank-slate view of humans?

Human capital is an important part of GDP forecasting. Do the models in use today view humans as "blank slate", meaning they can be educated to the same level, or do they take into account ...
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Does a drop in GDP per capita, with the population staying around the same, mean people on average are poorer?

Essentially, I'm trying to determine if there is a correlation between a drop in GDP per capita (e.g. during the 2008 financial crisis, Australia's GDP per capita dropped from USD \$49,000 to $42,000 ...
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Factor cost market price basic price

Sir Basic price = Factor cost + net production tax Market price = Basic price + net product tax Then how do we say that market price is factor cost + net indirect tax? Only product tax is a part of ...
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63 views

Do recessions matter?

One common definition of recession is "two consecutive quarters of negative GDP growth". GDP growth affects other variables, such as stock prices, interest rates, unemployment, and personal income. ...
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Upper bound on wealth that can be created for each country

I get very confused on the subject of wealth and I do not, I repeat, I do not have the time to read Adam Smith. And I have no formal training in economics. As a layman, I wish to ask a simple question....
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111 views

Is the concept of limited liability in corporate law beneficial to economy

The concept of limited liability in corporate law is widespread all over the world. Limited liability means, that owners of a company can only loose their capital invested into the company - the ...
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43 views

What is low unemployment and low gdp growth symptomatic of?

Obviously there are caveats with GDP, if you build a bridge to nowhere it counts as GDP, but if you mow your own lawn or volunteer to pick up garbage it doesn't count, and so forth and so on. However, ...
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Purchasing power of currency abroad

Say you have two countries A and B. Suppose we have a situation where country A's currency can purchase much more in country B than the other way round. What causes this phenomenen? Is it possible ...
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Data Set of Bourguignon and Morrison 2002 AER

This question is about the following paper: F. Bourguignon and C. Morrison "Inequality among World Citizens: 1820-1992", American Economic Review, Vol. 92, No. 4. (Sep., 2002), pp. 727-744. On p.730,...
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Taxes and GDP, where do these come in in the formula?

We all know that the formula for GDP I'd given by GDP = C + I + G + NX I would like to know, whether I am right in deducing that when consumers and industry pay taxes, or when there are import and ...
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111 views

Isn't it pointless to care about GDP?

If I pick up a stone there and sell it to you for 1 million dollars, 1 million dollars added value is created and added to GDP. If you sell it to me for the same price, virtually nothing has happened ...
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German economic growth in 20th century

I have question regarding this great animation: Animation: The World’s 10 Largest Economies by GDP (1960-Today) Why did Germany GDP shrink so much from 1995 to 2000, while US was still growing very ...
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1answer
22 views

How can I adjust the base year of this price index?

I am given the following data for GDP deflator: 1997: 100.0 1998: 100.8 1999: 102.5 2000: 109.9 2001: 112.5 2002: 115.9 2003: 119.7 2004: 122.1 2005: 126.5 ...and so on. Currently, 1997 is ...
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Discrepancy of GDP and International Transaction Releases for Exports

The Bureau of Economic Analysis ("BEA") provides consolidated data from several different government agencies. Currently they provide exports under both a Gross Domestic Product ("GDP") release as ...
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Nominal and Real GDP [closed]

If nominal GDP is, for example, \$1,620 billion in 2017 and increases to \$1,680 billion in 2018, is the growth rate 3.7%? Or does real GDP first need to be calculated using a deflator?
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711 views

Will an increase in interest rate cause short run aggregate supply to shift?

Most business borrow for financing their purchases of raw material and capital etc. Shouldn't a interest rate rise cause cost of production to increase, therefore shifting SRAS to left? Thanks in ...
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80 views

Does open source software contribute to GDP?

Does open source software contribute to the GDP of a nation? If yes then how, and how does it depend on the increase in usage? For instance, would an increase in the usage of open source software ...
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GDP per capita and trade relationship

There's a lot of literature describing the relationship between growth and trade, but I'm not sure what conclusions I can draw from GDP per capita (specifically) and trade in one particular year for ...
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620 views

Growth theory / Initial GDP: positive coefficient sign

I estimated growth regressions for several EU countries. In each of them, the sign of "initial GDP"'s coefficient is statistically significant but positive, which contradicts growth theory as well as ...
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Is deprecation included in the value added approach?

I have been asked this question: "Folt Industries in 2017: It sold 1000 in sweaters, it imported 200 in wool from abroad, and purchased 200 in wool from domestic suppliers, it purchased a sewing ...
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GDP simple question got me confused: the sale of a capital asset

a) Delta Air Lines buys a new jet from Boeing for 200 million dollars. b) Delta Air Lines sells **one of its jets to Kim Kardashian for 100 million dollars. So.. a) $200 million investment, ...
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GDP with Intermediate Production

I'm a total noob. Please be kind. :) GDP is only calculated using "end products". This seems terribly difficult to me. For example, is a truck an end product or a method for production? If I'm ...
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1answer
20 views

What does it mean when R&D is “3% of GDP”?

When we talk about R&D, does it mean that the final goods of R&D amount to 3% of GDP? Or does it mean that a specific nation is spending an amount of money on R&D that is equivalent to 3% ...
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Calculating nominal GDP

I would like to understand one detail of how nominal GDP of a country in a given year is calculated. It seems to me that the GDP in each country is first calculated in the national currency and then ...
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1answer
80 views

rates vs. level

For my thesis I will run some regression (OLS and ML: Probit). I like to distingish between variables in growth rates and variables in level form, if there is any important issue that I have to ...
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1answer
1k views

Quarterly GDP growth: YoY vs QoQ / terminology

Quarterly GDP growth can be calculated either in terms of YoY change or - in the case of seasonally adjusted data - in terms of QoQ change. (A third option would be to annualize the QoQ rate.) To ...
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How can the “Share of merchandise imports at current PPPs” be negative?

I'm looking at the Penn World Table 9.0 data, and find that the "Share of merchandise imports at current PPPs" (csh_m) can be negative. For example, ...
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163 views

Conversion of GDP PPP International \$ 2005 into GDP PPP International \$ 2011

Essentially I have two different datasets that I'm trying to consolidate. One set of data comes from the World Bank Databank, and is a set of historical GDP PPP values for all countries expressed in ...
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2answers
33 views

Is this a valid or legitimate way of comparing countries on traits and characteristics?

Country A has 16 million inhabitants and 2.000 MW of solar panel generated power, also a GDP of $50.000 per capita Country B has 160 million inhabitants and 2 MW of solar panel generated power, ...
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23 views

Convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for a number of countries

Which conversion factor / formula should be used to convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for different countries? I have found an identical question, but without a clear, ...
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38 views

What makes up GDP in the real estate sector?

The global GDP can be slit up between different sectors to see how sectors contributed to economical growth. I'm interested in knowing what elements are used to calculate the GDP in the real estate ...
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8 views

Nominal GDP to Current purchasing power parity

Hi I would like to convert nominal GDP in current US dollars to current purchasing power parity in 2011 US dollars. Is this nominal GDP already converted? if GDP were in LCU I would convert it to ...
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1answer
34 views

Where's a good place to find Information on Non-OCED countries?

I'm looking for Private Savings (Sp), Investment (I), Taxes (T), Government Spending (G) for India.
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How do I rebase my GDP with different base year?

My data are the following: Current GDP 1996-2017 Real GDP (base year 1985) - 1996-2009 Current GDP - 2009-2017 Real GDP (base year 2000)- 2009-2017 My question is how would I rebase my data from ...
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1answer
68 views

GDP Growth QoQ vs YoY: Why do the figures not match?

According to statista.com, US Q4 GDP growth rate was 2.6% over the economy in Q3. However, why is the annualized growth rate for the US therefore not be a sum of all 4 quarters if their definition of ...
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1answer
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Does Visitor Export Include Airline Tickets?

Does visitor export include the purchase of airline tickets? If so, I would assume that it only counts airline businesses that are established in the country of question.
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How does buying/selling houses affect the GDP?

Suppose I buy a house and sell it off in the same year for the same price, would the GDP for that year increase by twice the value of the house, or only once, or not at all?
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how is a trade imbalance related to domestic savings?

I was confused by a statement in an article from Paul Krugman in the NY Times: The reason America runs persistent trade deficits isn’t that we’ve given away too much in trade deals, it’s that we ...
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What Level of Government Debt to GDP Ratio is Sustainable?

I was reading that Japan has a debt to gdp ratio of 240pc and I cannot understand why this has not left the country "bankrupt"? From looking at this like an ordinary person this level would be ...
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The income method of calculating GDP

Using the income method we subtract the indirect tax to work out GDP@ MARKET PRICE but if imports are also give do we subtracted those import too using the income method.
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real gdp per capita vs real gdp

this site summarizes the difference between GDP and GDP per capita as: ...
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2k views

Is economic growth measured in real GDP or in real GDP per capita?

As an example, take a country where real GDP (measured in base year dollars) increases every year, but where the real GDP per capita (also measured in base year dollars) fluctuates, increasing and ...
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How Do Imports Affect GDP

Lets say the U.S. imports a brand new Ferrari that costs $600,000. I know that it would take away from the U.S. GDP since it's considered an import. However, if a consumer buys that Ferrari from the U....
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When measuring the net economic impact of a citizen, what measure is used?

When measuring the net economic impact of a citizen or group of citizens, what measure is used? Is it GDP contribution (ie GDP/capita)?