13 votes
Accepted

What Level of Government Debt to GDP Ratio is Sustainable?

As you have pointed out: where it comes from is very important. As to the Japanese situation it is quiet different from the US position from example. In fact most of the Japanese debt is owned by ...
Alexis L.'s user avatar
  • 593
9 votes

What Level of Government Debt to GDP Ratio is Sustainable?

I don't think you can sensibly discuss this without including two additional factors: what is the prevailing interest rate? is the debt in local or foreign currency? The first affects the cost of ...
pjc50's user avatar
  • 558
3 votes

Textbooks claim that the difference between GDP and GNP (or GNI) is about geography vs citizenship--is this correct?

Residency is a complex definition. For example, the Council for Science and Technology of my country supports many graduate students abroad every year. Those guys stay abroad for periods of 1-5 years, ...
Oscar's user avatar
  • 46
3 votes

What Level of Government Debt to GDP Ratio is Sustainable?

The key point is not the Debt/GDP ratio by itself but the sustainability of the debt over time. The government borrows money from the market and uses taxes to repay it, as households borrow money ...
Bux's user avatar
  • 31
3 votes

What's the difference (if any) between "fixed assets" and "fixed capital" in the UN SNA?

Put on your institutional hat. And make a distinction between fixed assets, like land, and the ownership of fixed assets: capital. See the European System of National Accounts 2010 p. 73.
Merijn Knibbe's user avatar
2 votes
Accepted

why has the GDP per capita of Ireland grown of almost 30% between 2014 and 2015?

It is an national accounting reason, rather than the Irish people have higher incomes or being more productive It seems that some companies previously deemed to be foreign are now deemed to be Irish, ...
Henry's user avatar
  • 4,755
2 votes

Difference between capital and current account

You can think of the capital account as "exports of liabilities" - a capital account surplus means that a country is exporting liabilities (borrowing) from abroad to pay for imports of goods and ...
Ege Erdil's user avatar
  • 691
2 votes

Who gathers the production/use data that makes up GDP? And how?

In the UK, which uses what is know as "the output approach", the Office for National Statistics (ONS) sends out around 45,000 surveys to business, called the Monthly Business Survey (MBS). The ONS ...
LondonRob's user avatar
  • 330
2 votes

please help describe a) what exactly is the Paradox of Profits , b) what is the argument of these papers exactly

You largely answered this question yourself: you provided this reference to a Gennero Zezza paper: (link to paper) Zezza states in the second paragraph that most of the thinking about the Paradox of ...
Brian Romanchuk's user avatar
2 votes

Difference between Income-Expenditure Identity and the Goods Market Equilibrium condition

The output defined with spending approach: $Y\equiv C+I+G+NX$ is an identity because it holds by definition. By definition output must be equal to sum of spending, investment government spending and ...
1muflon1's user avatar
  • 55.6k
2 votes

What Level of Government Debt to GDP Ratio is Sustainable?

There is a key factor determining a country's likelihood of default which has only become a research topic in the last decade or two: The quality of its government, in particular the prevalence of ...
Peter - Reinstate Monica's user avatar
2 votes
Accepted

Splitting GDP between population

GDP data are not reported on individual level so that is not directly possible (at least not without going through the expense of collecting such data). However, output is equal to income (see Mankiw'...
1muflon1's user avatar
  • 55.6k
2 votes
Accepted

Accounting for household work in the GDP

Are there techniques, regardless of practically how difficult they are, of possibly measuring domestic work? Yes, measuring household gross production (GDP measures gross product not amount of work), ...
1muflon1's user avatar
  • 55.6k
2 votes
Accepted

Confusion in the relationship between GNDI and GNI

No, taxes are either: used for transfers between individuals. One person has less to spend on consumption or investment but other person has more. government income also counts as a disposable income ...
Leeh Mizrahi's user avatar
1 vote

Difference between Income-Expenditure Identity and the Goods Market Equilibrium condition

This is an important question which is usually covered in good undergraduate texts. You are correct in pointing out that the two appear to be same. But there is a subtle difference. The difference ...
Dayne's user avatar
  • 1,725
1 vote

Treatment of natural disasters and wars in consumption of fixed capital

I am answering this both as a PhD in economics and as a Certified Accountant (I am both). This quote for the wikipedia page is garbage, because it comes after the article has correctly informed the ...
Alecos Papadopoulos's user avatar
1 vote

Basic question on S=I

The reason for that is that if you check carefully the model an important assumption is that investment is fixed $I=\bar{I}$ once you relax this assumption and allow $I$ be some variable function of ...
1muflon1's user avatar
  • 55.6k
1 vote

Current accounts as savings?

This is accountancy and double-entry bookkeeping, but intuitively there are two ideas underlying this: The net difference between domestic investments and domestic savings has to be financed from ...
Henry's user avatar
  • 4,755
1 vote

What is the economic strategy of the UK?

You are correct in saying that a household is not comparable to the U.K. or any other country. A household does not issue currency and bonds and typically cannot issue debt obligations that are good ...
H2ONaCl's user avatar
  • 943
1 vote

Intermediate demand vs. Intermediate consumption

Intermediate consumption total intermediate consumption is the difference between gross output (sales or receipts, which can include sales to final users in the economy or sales to other industries (...
Mike J's user avatar
  • 1,471
1 vote

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

The IMF Data, the UN Country Data or the World Bank Open Data should be good data sources covering a wide range of countries.
JoaoBotelho's user avatar
  • 2,145
1 vote

Is it possible for Gross value added be negative on a company level?

Yes, it can happen if a company is selling things for less than it cost it to produce them, though for obvious reasons this doesn't happen very often (or at least not over any great length of time) as ...
Gary's user avatar
  • 251
1 vote

Why do we consider purchase of house by households as investment?

TL;DR: From the point of view of the national accounts, when someone buys a house, they're not doing it as a member of a household, they're doing it as (and this is a direct quote as highlighted below)...
dismalscience's user avatar
1 vote

Relevance of government liabilities to GDP

The government debt represents the total liabilities outstanding that the government must (at some point) repay to investors. Generally to do so, governments tax their populace, either now, or at some ...
AndrewC's user avatar
  • 1,370
1 vote

Who gathers the production/use data that makes up GDP? And how?

Answering to the who: the GDP is usually calculated by a statistics agency of the government. In the US it is the America’s Bureau of Economic Analysis; in Britain, it is the Office for National ...
JoaoBotelho's user avatar
  • 2,145
1 vote

Is the BEA double counting benefits in Personal Income?

Statistical Agencies do not necessarily obey the habits of Economic Theory. There is no "mistake" here (certainly, there is no double-counting), but a different approach to what each concept means or "...
Alecos Papadopoulos's user avatar
1 vote

Domestic Demand, Private Consumption, Public Consumption, Gross Fixed Investment Relationship

I assume your numbers come from the 2012 numbers on page 4 or 5 of this document, which are rather different to the 2012 domestic demand numbers the IMF published a year earlier on page 28 or 29 of ...
Henry's user avatar
  • 4,755

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