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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What is the Gross Domestic Product (GDP)?

I suppose GDP is supposed to create a measure of a country's wealth/welfare, something easily indexable. But how exactly is it composed? And is its composition disputed? How good is it at measuring a ...
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What is the purpose of measuring GNP?

I know that the GDP (the value of all final goods and services produced within a country during a given period of time) is useful for determining the productivity of a nation, the size of the nation's ...
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On the relationship between income distribution and GDP

I was thinking about the following simple example when I wondered what the theoretical effects wealth equality or inequality may have on GDP: Suppose there is a society with three individuals who ...
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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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Is there an alternative metric to GDP that measures a country's assets rather than flows?

The Gross domestic product measures the value of all final goods and services produced in a period. This has some limitations. For example, if a car hits a lightpost and both need to be repaired and ...
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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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Why did the Federal Reserve change the data about USA GDP?

This is the data published on 20 March 2013 FOMC meeting: (http://www.federalreserve.gov/monetarypolicy/fomcprojtabl20130320.htm) 20 March 2013, Change in real GDP (actual): ...
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Can a closed economy flourish?

I was wondering if it is possible to run a country based only on domestic economy and not to enter the world economy. Basically, if certain economy of a certain country fails and poses threat to world ...
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Why doesn't anyone talk about GNW (Gross National Wealth)?

I just noticed a very interesting fact. GDP of the United States: $18.5B GDP of China: $11.4B If we look at national wealth... GNW of the United States: $84.8B GNW of China: $24.1B The margin ...
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Are many of the traditionally oil dependent Gulf states really successfully diversifying their economies?

I've often heard the claim that many Persian Gulf states are successfully diversifying their economies away from oil (e.g. non-oil share of UAE's GDP is 71% and in Saudi Arabia, non-petroleum sectors ...
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Models for inflation prediction

I am looking for some statistical models that are accepted to best predict inflation rates. Anything that is more complicated than linear model will be appreciated. Or even recommend books that ...
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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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Do the donated NFL losing team shirts destroy local economies?

I've recently become aware of the fact that the NFL prints both championship teams' shirts in advance to satiate incredible demand -- but instead of destroying the losing teams' shirts like they used ...
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Calculating rate of growth of per capita income

Given this question: National income is increasing by 1.5% a year and population by 2.5% a year. What is the rate of growth of per capita income? Attempt: Since per capita income is GDP/ ...
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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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How is software treated in Gross Domestic Product calculations?

Is there a concise explanation of how software is treated in GDP calculations? It seems a bit complicated. I can only figure out part of the story: For consumer purchases, I think all software ...
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Which data on GDP to use?

Wiki's article provides with 3 sources for GDP data: IMF, World Bank and CIA. I wonder which of them is better (i.e. more accurate)? Also, what about reliability of so called Penn tables? If anyone ...
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How is the GDP growing when nothing else seems to be?

We've had strong GDP growth all three quarters this year. To me, that would indicate that, in at least some areas, we should be seeing growth. However, from my extremely ignorant armchair, it doesn't ...
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How would gross world product look like if fossil fuel is treated as capital and not as income?

The idea to treat fossil fuel as capital is found in the first chapter of the book "Small is Beautiful: (A Study of) Economics as if People Mattered" (1973) by E. F. Schumacher. Is there recent ...
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Are goods that are wasted counted into the GDP of a nation?

If x apples are produced in an economy, and only x - y are consumed (y apples get rotten at different stores in the country), is the value of these wasted apples considered as a part of GDP?
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Ok to normalize GDP change by population change?

Does it make sense to normalize change in real GDP by the contemporaneous change in population? I'm interested in this calculation for the following reason. Suppose real GDP increases. I'd like to ...
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US trade outpaces GDP

I notice that US exports doubled between 2000 and 2011, imports also increasing greatly, but GDP only grew by 20%. Thus, trade in the United States seems to have grown substantially faster than ...
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Normalizing comparisons of corporations and countries

When publicly-traded corporations reach record valuations, articles in the media often compare such valuations to the GDPs of countries throughout the world, typically in the form "Company X's ...
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Do unsold goods still make it into the GDP?

Assuming Car Motors in Tiny Country has 1m USD and it spends it on workers and suppliers to produce 1m USD worth of cars (cost) for export at 2m USD (1m USD profit). A tsunami hits and drags all the ...
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Is a country in economic downturn if its growth rate is negative, but improving?

As I understand it, economic downturn means that economic growth is significantly slowing down or entering into recession. (If anyone wants to correct me, please do so). i.e. Growth rate is decreasing....
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How do I change the base year of real GDP using the GDP deflator and nominal GDP?

I'll use the US as an example. I have three data series nominal GDP $(Y)$ real GDP in 2005 USD $(\bar{Y})$ the GDP deflator $(d)$, with 2005 as the base year, so $d_{2005} = 100$ I want to change ...
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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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Why are imports subtracted from GDP?

GDP is a measure of a country's production. $$GDP = C + I + G + X_n$$ $C$ = Consumer Consumption $I$ = Gross Investment $G$ = Government Expenditures $X_n$ = Exports - Imports Exports are what we ...
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Is education a part of the U.S. exports component of GDP?

I was searching for this but could not find an answer. My question is whether education of the U.S. universities provided to foreign students counts in exports component on GDP. And if so, can we ...
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How popular are alternative standard of living measures amongst economists?

GDP as a measure of the well being of an economy has been criticised as not being an accurate measure of the quality of an economy, as it excludes non-commericial interactions (such as housework or ...
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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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Basic question on calculating real GDP

My book says the way we calculate real GDP in a given year is by adding the quantities of all goods and services produced in that year multiplied by their prices in some base year. There are actually ...
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Why use the income approach to approximate GDP if it relies on the value produced by the expenditures approach?

To preface, I'm taking a macroeconomics class and we're learning about measuring GDP. The textbook says that there are two main ways to measure GDP: the expenditures method and the income method. The ...
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How to measure GDP in practice?

You can find many explanations of theoretically how GDP is measured. But how is it done in practice? Is it estimated by extrapolating from small samples of activity or can the overall value be ...
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Understanding Tertiarization of the Economy

Trying to understand some of the core mechanics of tertiarization in developed economies. According to the WorldBank, "As incomes continue to rise, people’s needs become less “material” and they ...
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World bank data - GDP per capita current US\$ vs constant 2005 US\$

I'm looking at two charts from world bank on GDP per capita for Croatia and Russia - and this is what I get: Now, from what I gathered, the first chart should represent nominal gdp and the second one ...
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Why is GDP equal to the sum of revenues?

National Income can be expressed in two ways : In can be derived from the GDP, as, roughly, a sum of "money spent" : GDP is equal to C + G + I + NX, where C, G, I and NX are houshold consumption, ...
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Nominal GDP versus PPP in comparing military spending of different countries?

Military spending as percentage of GDP is the most used measure of the economic capability of a certain country/military. But Some countries like India for example, have a huge difference between ...
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Sources of historical cross-country government debt to GDP data

I am looking for a source containing debt (government debt) to GDP data of different governments. Do you know of any reliable sources with data going back as far as possible (at least 1960s)?
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Database for Monthly GDP

Can anyone point me to a source of monthly GDP? So far I only find yearly and quarterly. I need it for the period of Jan/1999-Jan/2015 for USA, Japan, the Eurozone and UK. Thank you!
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How does real GDP take into account technological advancement?

I'm asking this question, since it was not explained in my textbook and since I couldn't find the answer in Internet. For example, 1 TB HDD costs 50 dollars now, and 100 GB HDD costed 50 dollars in ...
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Why do we change the base year?

Never, never, understood this. I know what Nominal and Real GDP is, I know how the base year calculations work, my question still remains. The idea behind real GDP that makes most sense to me is the ...
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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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Do products which are only produced and consumed locally contribute to GDP value?

According to Wikipedia: Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal ...
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Financial investment in the composition of GDP

In the production function Y = C + I + G + NX Does foreign investment in domestic assets (i.e. foreign buying of domestic bonds) - and vice versa - come under the Net Exports variable? Which ...
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How are cryptocurrencies reported in GDP?

Apparently the total market value of cryptocurrencies is currently close to $118 billion. Is any of this reflected in GDP figures over the years? For example, if I start mining bitcoin today, I will ...
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How can I best estimate a company's contribution to GDP?

Would revenues be a good proxy variable? If not, what are the other proxy variables that I can use?
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What is the Credit-to-GDP gap exactly?

I have been hearing a lot about this metric in relation to rising fears of a Chinese financial crisis. I am wondering, what exactly does this mean? I am told it refers to the difference between ...
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Why are “transfer payments” not part of GDP?

It is well-known that transfer payments are not counted in GDP (e.g. wikipedia 1 and wikipedia 2). For instance, exercise 2.c in Chapter 2 of Jones book's Macroeconomics ask to calculate how much GDP ...
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What would happen if the entire world switched to the 4-day work week? [closed]

What would happen if the entire world switched to the 4-day work week? Specifically would someone's quality of life drop significantly in a developed or a non-developed country?