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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Paradox of GDP: Mississippi has similar GDP per capita than Germany - why are people in Mississippi poorer?
I have often heard this claim before (e.g. https://www.reddit.com/r/explainlikeimfive/comments/1fttduv/eli5_mississippi_has_similar_gdp_per_capita_53061/):
Mississippi has similar GDP per capita (...
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Why is it correct to include VAT in GDP
The Gross Value Added approach to calculating GDP uses:
Gross Value Addded + Product Taxes - Product Subsidies
The rationale for this is that is is apparently easier to include product taxes and ...
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Do economists prefer numbers over percentages?
Here is a question I have been wondering about.
Suppose I have data like GDP per Capita and Inflation for each month. I want to fit a econometric model to this data. Specifically, I want to see the ...
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Can the GDP deflator between 1 year and the next tell us something useful about inflation in THAT year
I am looking at GDP data from India for Q1 of 2024-25 and Q1 of 2025-26. Using published Govt data on nominal and real GDP values, The GDP deflator works out at 1.780, and 1.797 for these 2 periods ...
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Is GDP Just Measuring Money Changing Hands Under MV = PQ?
I read an article that, as I understand it, interprets the MV = PQ identity to mean that if the money supply (M) stays constant, increasing the velocity of money (V) would still raise GDP. According ...
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Mapping BEA (PCE and fixed assets) types to NAICS codes
BEA publishes input-output tables using the NAICS classifications.
For fixed assets and PCE data however it uses a different set of types:
https://apps.bea.gov/iTable/?ReqID=10&step=2&_gl=1*...
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Is the Triffin "tipping point" a real possibility?
In A User's Guide to Restructuring the Global Trading System by Miran (2024), the author discusses the concept of the Triffin equilibrium and a specific term called the Triffin "tipping point&...
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Was the decline in manufacturing employment mostly driven by automation and productivity growth, not by the trade deficit?
In a New York Times podcast by Ezra Klein, Paul Krugman, Nobel prize laureate and former Times columnist, discusses whether eliminating trade deficits would restore U.S. American industrial production ...
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How Did the Growth Commission Calculate the UK's Regulatory Cost Multiplier?
In 2023 The Growth Commission in the UK published a press release about their newly released report:
According to the report, costs on businesses from regulations imposed since 2015, could have a ...
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Nominal GDP growth for the US Economy
In a recent post, somebody wrote:
Nominal GDP grows at a rate of something like 2 or 3% per year.
I think this is wrong and here is why. For the US, I would expect (real) GDP to grow at about 2% a ...
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Economics of festivals and public events
India is land of festivals. Many economists say that festivals boost economy. This happens in several ways: Increased Consumer Spending: Festivals encourage people to spend more on food, decorations, ...
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Meaning of negative investment in the Samuelson multiplier-accelerator model?
I am studying the Samuelson multiplier-accelerator model from the book Economics with Calculus by Lovell. It's an appealing model because it is based on nothing except the national accounting identity,...
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GDP Income vs Expenditure Approach
I have a question about how GDP is calculated in the income and expenditure approach: I keep getting an odd discrepancy! This is best shown using a simple example. Suppose person A earns \$100 dollars ...
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Explanation for chain-weight GDP growth
I am currently learning about how real GDP growth is calculated, and I am confused by the motivation for the chain-weight method of calculating it. To calculate the chain-weight real GDP growth from ...
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GDP and taxation
I have a question about the calculation of GDP measures. The question is perhaps easiest to understand if we consider calculating calculating GDP using the income approach (see here), but might arise ...
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