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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1answer
39 views

Does levying a new tax on production increase GDP?

Consider a society with no taxes on (e.g) commercial land ownership. One day the government impose a small tax on land owned by the foresting industries. I would assume that prices on goods produced ...
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Using metrics provided by FRED to identify the business cycle

I am interested to see how the "business cycle" is associated with our firms sales. The hope is that if we can show that our sales line up with the business cycle then we can make decisions ...
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GDP Identity:Why does $\text{C+S+T = C+I+G+(X-M)}$?

$$\text{C+S+T = Y = C+I+G+(X-M)}$$ where: $\text{Y}$ is GDP $\text{C}$ is Private consumption $\text{S}$ is Private savings $\text{T}$ is net taxes $\text{I}$ is investment $\text{G}$ is ...
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115 views

Does the GDP contribution of a service sector represent the gross profits of that sector?

I couldn't find a simple answer to this question: does the dollar contribution of a service sector represent the gross profits of that sector? For instance, the GDP contribution of the financial ...
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1answer
49 views

How does an UHN individual leverage their wealth? [closed]

How does an UHN individual leverage their wealth? Do they in fact do so, and should for example Bill Gates' 80 billion be understood as 800 - 900 billion dollar if he leverage his wealth 10 x? ...
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119 views

Can the growth rate increase after a change in the base year?

Nowadays, I'm observing that the government of India is predicting much higher GDP growth for the Indian economy. I hear that the government has changed the base year, such that it is able to show a ...
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1answer
60 views

Timeline of comprehensive NIPA revisions

I have been fruitlessly searching for a list of dates of comprehensive National Income and Product Account revisions. Clues I have found so far: The Bureau of Economic Analysis website says the 1999 ...
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1answer
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What are the advantage of chain-linked prices over constant prices?

Some variables in economics like GDP are computed in chain-linked prices or constant prices. What are advantages of chain-linked prices vs constant prices? Thank you
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1answer
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Areas of Europe with more women than men have higher GDP and lower unemployment. Why might this be? [closed]

Using Eurostat data I've found that regions of Europe with more women than men (i.e. female biased sex ratio) have higher GDP and lower unemployment than areas with male biased sex ratios. any idea ...
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1answer
31 views

Congruence of GDP as calculated by production and by consumption

Here I've read the following (translated by Google) GDP can be calculated in two ways: firstly, by origin, that is, by estimating the value of all goods and services produced, and secondly by the use ...
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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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107 views

How does government spending on imported goods affect GDP?

How does government spending on imported goods affect GDP? Is it first counted as government spending and then subtracted as imports? For instance, if the US government buy a new accounting system ...
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Relevance of government liabilities to GDP

After Malaysia's national debt was [reassessed][1], its totaled $250bn along with other government liabilities. Now, I'm having trouble understanding the direct relevance of the ratio of goverment ...
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GDP data for the baltic states from 1988-1994

since I have to write a paper on transformation/transition processes in the baltic states (Estonia, Lithuania and Latvia), I would like to analyze GDP data from 1988 (shortly before the end of the ...
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1answer
28 views

GDP projections for the fifty American states

I'm looking for GDP projections for the fifty American states (up till 2040, or 2050). Are these available online, or in any economics papers? I've found GDP projections for America, and historical ...
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1answer
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Is there anything like ratio between number of manufacturing industries to number of retail shops?

In my country there are very few manufacturing factories,but large numbers of small retail shops (like one shop per house or may be even more). What are the effects in the economy of a country for ...
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1answer
107 views

GDP/PPP influence - Adjusted savings: carbon dioxide damage

I found this variable and I'm not a native english speaker, so I'm a little bit confused with "adjusted savings" right in front of "carbon dioxide damage". I'd like to know what does this variable ...
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1answer
57 views

Applying real growth rate to nominal value

What happens if one applies a real GDP growth rate to a nominal GDP value? The result can't be a GDP figure in constant prices, since that would imply applying a real GDP growth rate to constant GDP ...
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1answer
906 views

Is it appropriate to change the base year of the real GDP to a more recent one?

I have a dataset containing Venezuela's nominal GDP, real GDP, GDP deflator and population from 1997 to 2013. I am interested in calculating real GDP per capita, but the base year of the GDP deflator ...
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1answer
99 views

Estimation of the future growth of real GDP per capita of the world

From 60's to 70's, the real GDP growth per capita of the world fluctuated about 3%. Since then, it fluctuated about 1.8% or somewhere around. (I mean, the average would be about 1.8% since 1970.) I ...
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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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0answers
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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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Positive effects of a Tunisia-EU free trade agreement?

Tunisia might be signing a free trade agreement with the EU very soon. It's called ALECA or DCFTA. Many activists and labor unions are opposing such an agreement because it would result in losing ...
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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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Breaking down components of GDP per capita

GDP per capita can be broken down into 4 smaller components: Labor productivity, Average hours worked, Employment rate and Participation rate as can be deduced from the following formula: What I'd ...
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1answer
197 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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563 views

While calcluating GNP, the overall income of a citizen working abroad is considered or only his/her remittances?

Suppose a citizen of Country A is working in Country B with income X USD, and he sends Y USD as remittance to A, what is considered while calculating GNP? X or Y? (X is inclusive of Y)
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Two ways of calculating real GDP: do they produce the same result?

My professor gave us two formulas for GDP for 2012 in 2010 dollars: y = P1 (2010) * Q1 (2012) + P2 (2010) * Q2 (2012) ... And: ...
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GDP and DEBT/GDP ratio of a Nation [closed]

Imagine following tiny nation. It consist only of 100 people running a car manufacturing plant. The nation imports every resource it needs for manufacturing those cars. It also imports all energy, ...
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55 views

Test Series for Stationary Process

I want to apply grangers' Test between GSDP and Electricity production in the state. The state is a newly formed in the year 2000 and hence I have only 13 data points, as mentioned below Year | ...
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1answer
127 views

Calculating Service Contributions to GDP

Trying to get some clarification on how GDP is calculated for service industries. Are input resources netted out (e.g. fuel for an airline), the same way wheat would be for a loaf of bread? What ...
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2answers
66 views

Why is such a high US national debt not resulting in another great depression?

The chart below shows that US national debt as a percentage of its GDP is at an all time high excluding the one during WW-II. While I'm not as well informed in economics as most of the people on this ...
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113 views

Why did the Greek GDP grow so fast between 2002 and 2004?

Here is the history of the Greek GDP. In 2004 year it was 239.7\$ billion, but in 2002 it was 157.7\$ billion. It grew by approximately 50%. How did it grow so fast?
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In what country outside of the EU is the public sector the highest percentage of GDP?

The article Railway strikes test Macron’s reforms - French strikes states that "Mr Macron’s reform of SNCF is only part of a bigger effort to reshape the welfare state in a country where the public ...
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269 views

Why was protectionism considered bad in the great depression?

its said that "there is all-but-universal agreement that the adoption of restrictive trade policies was destructive and counterproductive and that similarly succumbing to protectionism in our current ...
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619 views

Why do wars increase the public debts?

This should be a very simple question for most of you, but I can't seem to get an answer so I decided to ask the question here. So please be as simple as possible and excuse my ignorance. This is a ...
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1answer
37 views

Does Direct Benefit Transfers make an economy poorer?

Printing money and giving to the poor causes inflation. Increases demand and hikes prices. This is basically certain. But on the contrary, a paper titled Debunking the Stereotype of the Lazy Welfare ...
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79 views

Why Chinese GDP does not correspond to Chinese GDP growth rate?

Hi all. According to google we have: China GDP 2017=12.24 trillion USD China GDP 2016=11.19 trillion USD Therefore China GDP 2017 growth rate=(12.24-11.19)/11.19=0.0938 that is approximately 9.4% ...
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1answer
62 views

International shipping services count as exports?

A Greek ship owner transports mouse traps from Albania to Japan, making every year ten million Euro in revenue and one million Euro in profits. The total value of the mouse traps he transports every ...
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60 views

What would happen to the world GDP if we run out of minerals to mine but not of sources of energy?

I was thinking about how the depletion of minerals (metals and all material we mine from the Earth) will affect the GDP of the world. I read somewhere that at the current extraction rate, we will run ...
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2answers
124 views

What accounts for the high GDP of the United States?

Wikipedia defines GDP as: Measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time. So, I take it that the total value of all goods (and ...
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1answer
3k views

What is considered a “final product” for gross domestic product?

Given a territory and a time range, the gross domestic product is the sum of all the values added. The term “value added” is open to interpretation. Since the value added of a product or service is ...
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1answer
31 views

GDP Discrepancies

I'm trying to practice reading economic data from FRED and BEA websites, but they seem to be providing conflicting data that I cannot understand at all. For example, looking at Real GDP percentage ...
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1answer
22 views

Understanding GDP Chart

When I Google "GDP of 1950", I get ~$300 Billion. Looking at the graph @ https://fred.stlouisfed.org/series/GDP . I see Q1 280 billion Q2 290 billion Q3 308 billion Q4 319 billion My questions: ...
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51 views

How does the GDP multiplier work?

When we learn about the GDP multiplier, it is portrayed as 1/MPS, because savings are supposedly a leak out of consumer spending. However, what I don't understand is aren't those savings spent anyways ...
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2answers
29 views

How is GDP counted between different countries?

Sorry if this question is dumb, but I did not manage to find the answer on the web. The questions is as follows: As far as I understand, GDP is the total value of a country's production. It includes ...
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1answer
5k views

Why is depreciation added to the GDP with the income approach?

In my economics textbook, it states that when calculating GDP using the income approach, depreciation should be added. Specifically, GDP = Employee Compensation + Taxes less subsidies on businesses + ...
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1answer
163 views

Why is machine built this year but not sold this year included in GDP?

GDP is the sum of market value of all final goods in the current year, so why is is machine built this year but not sold this year included? In addition why is machine not built this year but sold ...
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2answers
223 views

Why GDP positive growth does not decrease inflation?

My understanding is : If production increases, it would imply the amount of goods increases as well for the same amount of money available in the market. Because of this, we should see prices of goods ...
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1answer
47 views

With interest rates and inflation in the U.S. low and growth moderate, where is the money going?

Question is basically in the title. With interest rates so low for such a long period of time, I wonder where are that injected cash has gone? I realize that the economy has definetly grown quite ...

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