total report about GDP

8/7/2019 total report about GDP

1/19

Gross domestic product

From Wikipedia, the free encyclopediaJump to: navigation,search

"GDP" redirects here. For other uses, see GDP (disambiguation).

CIA World Factbook2008 figures of total nominal GDP (bottom) compared to PPP-adjusted GDP (top)

Countries by 2008 GDP (nominal) per capita (IMF, October 2008 estimate)

GDP (PPP) per capita

The gross domestic product (GDP) orgross domestic income(GDI) is a measure of acountry's overall official economic output. It is the market value of all final goods andservices officially made within the borders of a country in a year. It is often positivelycorrelated with the standard of living,[1] though its use as a stand-in for measuring thestandard of living has come under increasing criticism and many countries are activelyexploring alternative measures to GDP for that purpose.[2]

GDP can be determined in three ways, all of which should in principle give the sameresult. They are the product (or output) approach, the income approach, and theexpenditure approach.
http://en.wikipedia.org/wiki/Gross_domestic_product#mw-headhttp://en.wikipedia.org/wiki/Gross_domestic_product#mw-headhttp://en.wikipedia.org/wiki/Gross_domestic_product#p-searchhttp://en.wikipedia.org/wiki/GDP_(disambiguation)http://en.wikipedia.org/wiki/CIA_World_Factbookhttp://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/Gross_domestic_incomehttp://en.wikipedia.org/wiki/Gross_domestic_incomehttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-0http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-0http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-1http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-1http://en.wikipedia.org/wiki/File:GDP_PPP_Per_Capita_IMF_2008.pnghttp://en.wikipedia.org/wiki/File:GDP_PPP_Per_Capita_IMF_2008.pnghttp://en.wikipedia.org/wiki/File:GDP_nominal_per_capita_world_map_IMF_2008.pnghttp://en.wikipedia.org/wiki/File:GDP_nominal_per_capita_world_map_IMF_2008.pnghttp://en.wikipedia.org/wiki/File:Gdp_nominal_and_ppp_2005_world_map_single_colour.pnghttp://en.wikipedia.org/wiki/File:Gdp_nominal_and_ppp_2005_world_map_single_colour.pnghttp://en.wikipedia.org/wiki/Gross_domestic_product#mw-headhttp://en.wikipedia.org/wiki/Gross_domestic_product#p-searchhttp://en.wikipedia.org/wiki/GDP_(disambiguation)http://en.wikipedia.org/wiki/CIA_World_Factbookhttp://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/Gross_domestic_incomehttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-0http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-1


2/19

The most direct of the three is the product approach, which sums the outputs of everyclass of enterprise to arrive at the total. The expenditure approach works on the principlethat all of the product must be bought by somebody, therefore the value of the totalproduct must be equal to people's total expenditures in buying things. The incomeapproach works on the principle that the incomes of the productive factors ("producers,"

colloquially) must be equal to the value of their product, and determines GDP by findingthe sum of all producers' incomes.[3]

Example: the expenditure method:

GDP = private consumption + gross investment+government spending+(exportsimports), or

In the name "Gross Domestic Product":

"Gross" means that GDP measures production regardless of the various uses to whichthat production can be put. Production can be used for immediate consumption, forinvestment in new fixed assets or inventories, or for replacing depreciated fixed assets. Ifdepreciation of fixed assets is subtracted from GDP, the result is called the Net domesticproduct; it is a measure of how much product is available for consumption or adding tothe nation's wealth. Production used by industries for further production, called"intermediate demand" is not included.

"Domestic" means that GDP measures production that takes place within the country'sborders. In the expenditure-method equation given above, the exports-minus-imports

term is necessary in order to null out expenditures on things not produced in the country(imports) and add in things produced but not sold in the country (exports).

Economists (since Keynes) have preferred to split the general consumption term into twoparts; private consumption, and public sector(or government) spending. Two advantagesof dividing total consumption this way in theoreticalmacroeconomics are:

Private consumption is a central concern ofwelfare economics. The privateinvestment and trade portions of the economy are ultimately directed (inmainstream economic models) to increases in long-term private consumption.

If separated from endogenous private consumption, government consumption

can be treated asexogenous,[citation needed]

so that different government spendinglevels can be considered within a meaningful macroeconomic framework.

Gross domestic product comes under the heading ofnational accounts, which is a subjectin macroeconomics. Economic measurement is called econometrics.

Contents
http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-2http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Gross_private_domestic_investmenthttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Net_domestic_producthttp://en.wikipedia.org/wiki/Net_domestic_producthttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Public_sectorhttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Welfare_economicshttp://en.wikipedia.org/wiki/Endogeneity_(economics)http://en.wikipedia.org/wiki/Exogenyhttp://en.wikipedia.org/wiki/Exogenyhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Econometricshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-2http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Gross_private_domestic_investmenthttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Net_domestic_producthttp://en.wikipedia.org/wiki/Net_domestic_producthttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Public_sectorhttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Welfare_economicshttp://en.wikipedia.org/wiki/Endogeneity_(economics)http://en.wikipedia.org/wiki/Exogenyhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Econometrics


3/19

[hide]

1 Determining GDPo 1.1 Income Approach

o 1.2 Expenditure approach

1.2.1 Components of GDP by expenditure 1.2.2 Examples of GDP component variables

o 1.3 Income approach

2 GDP vs GNIo 2.1 International standards

o 2.2 National measurement

o 2.3 Interest rates

3 Adjustments to GDP 4 Cross-border comparison 5 Standard of living and GDP 6 Limitations of GDP to judge the health of an economy

o 6.1 Alternatives to GDP 7 Lists of countries by their GDP 8 See also 9 Bibliography 10 References 11 External links

o 11.1 Global

o 11.2 Data

o 11.3 Articles and books

[edit] Determining GDP

Economics

Economies by region[show]

General categoriesMicroeconomics Macroeconomics

History of economic thought

Methodology Heterodox approaches

Techniques

Mathematical Econometrics

ExperimentalNational accounting
http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_product#Determining_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Determining_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Determining_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_Approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_Approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_Approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Expenditure_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Expenditure_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Expenditure_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Components_of_GDP_by_expenditurehttp://en.wikipedia.org/wiki/Gross_domestic_product#Components_of_GDP_by_expenditurehttp://en.wikipedia.org/wiki/Gross_domestic_product#Components_of_GDP_by_expenditurehttp://en.wikipedia.org/wiki/Gross_domestic_product#Examples_of_GDP_component_variableshttp://en.wikipedia.org/wiki/Gross_domestic_product#Examples_of_GDP_component_variableshttp://en.wikipedia.org/wiki/Gross_domestic_product#Examples_of_GDP_component_variableshttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_approach_2http://en.wikipedia.org/wiki/Gross_domestic_product#Income_approach_2http://en.wikipedia.org/wiki/Gross_domestic_product#Income_approach_2http://en.wikipedia.org/wiki/Gross_domestic_product#GDP_vs_GNIhttp://en.wikipedia.org/wiki/Gross_domestic_product#GDP_vs_GNIhttp://en.wikipedia.org/wiki/Gross_domestic_product#GDP_vs_GNIhttp://en.wikipedia.org/wiki/Gross_domestic_product#International_standardshttp://en.wikipedia.org/wiki/Gross_domestic_product#International_standardshttp://en.wikipedia.org/wiki/Gross_domestic_product#International_standardshttp://en.wikipedia.org/wiki/Gross_domestic_product#National_measurementhttp://en.wikipedia.org/wiki/Gross_domestic_product#National_measurementhttp://en.wikipedia.org/wiki/Gross_domestic_product#National_measurementhttp://en.wikipedia.org/wiki/Gross_domestic_product#Interest_rateshttp://en.wikipedia.org/wiki/Gross_domestic_product#Interest_rateshttp://en.wikipedia.org/wiki/Gross_domestic_product#Interest_rateshttp://en.wikipedia.org/wiki/Gross_domestic_product#Adjustments_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Adjustments_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Adjustments_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Cross-border_comparisonhttp://en.wikipedia.org/wiki/Gross_domestic_product#Cross-border_comparisonhttp://en.wikipedia.org/wiki/Gross_domestic_product#Cross-border_comparisonhttp://en.wikipedia.org/wiki/Gross_domestic_product#Standard_of_living_and_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Standard_of_living_and_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Standard_of_living_and_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_of_GDP_to_judge_the_health_of_an_economyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_of_GDP_to_judge_the_health_of_an_economyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_of_GDP_to_judge_the_health_of_an_economyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Alternatives_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Alternatives_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Alternatives_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Lists_of_countries_by_their_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Lists_of_countries_by_their_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Lists_of_countries_by_their_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#See_alsohttp://en.wikipedia.org/wiki/Gross_domestic_product#See_alsohttp://en.wikipedia.org/wiki/Gross_domestic_product#See_alsohttp://en.wikipedia.org/wiki/Gross_domestic_product#Bibliographyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Bibliographyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Bibliographyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Referenceshttp://en.wikipedia.org/wiki/Gross_domestic_product#Referenceshttp://en.wikipedia.org/wiki/Gross_domestic_product#Referenceshttp://en.wikipedia.org/wiki/Gross_domestic_product#External_linkshttp://en.wikipedia.org/wiki/Gross_domestic_product#External_linkshttp://en.wikipedia.org/wiki/Gross_domestic_product#External_linkshttp://en.wikipedia.org/wiki/Gross_domestic_product#Globalhttp://en.wikipedia.org/wiki/Gross_domestic_product#Globalhttp://en.wikipedia.org/wiki/Gross_domestic_product#Globalhttp://en.wikipedia.org/wiki/Gross_domestic_product#Datahttp://en.wikipedia.org/wiki/Gross_domestic_product#Datahttp://en.wikipedia.org/wiki/Gross_domestic_product#Datahttp://en.wikipedia.org/wiki/Gross_domestic_product#Articles_and_bookshttp://en.wikipedia.org/wiki/Gross_domestic_product#Articles_and_bookshttp://en.wikipedia.org/wiki/Gross_domestic_product#Articles_and_bookshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=1http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Outline_of_economicshttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/History_of_economic_thoughthttp://en.wikipedia.org/wiki/Economic_methodologyhttp://en.wikipedia.org/wiki/Heterodox_economicshttp://en.wikipedia.org/wiki/JEL_classification_codes#Mathematical_and_quantitative_methods_JEL:_C_Subcategorieshttp://en.wikipedia.org/wiki/Mathematical_economicshttp://en.wikipedia.org/wiki/Econometricshttp://en.wikipedia.org/wiki/Econometricshttp://en.wikipedia.org/wiki/Experimental_economicshttp://en.wikipedia.org/wiki/Experimental_economicshttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/National_accountshttp://en.wikipedia.org/wiki/File:GDP_PPP_Per_Capita_IMF_2008.svghttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_product#Determining_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_Approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Expenditure_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#Components_of_GDP_by_expenditurehttp://en.wikipedia.org/wiki/Gross_domestic_product#Examples_of_GDP_component_variableshttp://en.wikipedia.org/wiki/Gross_domestic_product#Income_approach_2http://en.wikipedia.org/wiki/Gross_domestic_product#GDP_vs_GNIhttp://en.wikipedia.org/wiki/Gross_domestic_product#International_standardshttp://en.wikipedia.org/wiki/Gross_domestic_product#National_measurementhttp://en.wikipedia.org/wiki/Gross_domestic_product#Interest_rateshttp://en.wikipedia.org/wiki/Gross_domestic_product#Adjustments_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Cross-border_comparisonhttp://en.wikipedia.org/wiki/Gross_domestic_product#Standard_of_living_and_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_of_GDP_to_judge_the_health_of_an_economyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Alternatives_to_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#Lists_of_countries_by_their_GDPhttp://en.wikipedia.org/wiki/Gross_domestic_product#See_alsohttp://en.wikipedia.org/wiki/Gross_domestic_product#Bibliographyhttp://en.wikipedia.org/wiki/Gross_domestic_product#Referenceshttp://en.wikipedia.org/wiki/Gross_domestic_product#External_linkshttp://en.wikipedia.org/wiki/Gross_domestic_product#Globalhttp://en.wikipedia.org/wiki/Gross_domestic_product#Datahttp://en.wikipedia.org/wiki/Gross_domestic_product#Articles_and_bookshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=1http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Outline_of_economicshttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/History_of_economic_thoughthttp://en.wikipedia.org/wiki/Economic_methodologyhttp://en.wikipedia.org/wiki/Heterodox_economicshttp://en.wikipedia.org/wiki/JEL_classification_codes#Mathematical_and_quantitative_methods_JEL:_C_Subcategorieshttp://en.wikipedia.org/wiki/Mathematical_economicshttp://en.wikipedia.org/wiki/Econometricshttp://en.wikipedia.org/wiki/Experimental_economicshttp://en.wikipedia.org/wiki/National_accounts


4/19

Fields and subfields

Behavioral CulturalEvolutionary

Growth Development History

InternationalEconomic systems

MonetaryandFinancial economics

PublicandWelfare economics

HealthEducation Welfare

PopulationLabourManagerial

Business Information Game theory

Industrial organization Law

AgriculturalNatural resource

EnvironmentalEcological

Urban Rural Regional Geography

Lists

Journals PublicationsCategoriesTopics Economists

Economic ideologies[show]The economy: concept and history

Business and Economics PortalThis box:viewtalkedit

[edit] Income Approach

This method measures GDP by adding the incomes that firms pay households for thefactors of production they hire- wages for labor, interest for capital, rent for land andprofits for entrepreneurship.

--The US "National Income and Expenditure Accounts" divide incomes into fivecategories:

1. Wages, salaries, and supplementary labour income 2. Corporate profits 3. Interest and miscellaneous investment income 4. Farmers income 5. Income from non-farm unincorporated businesses (**These five income components sum to net domestic income at factor cost.)

--Two adjustments must be made to get GDP:

1. Indirect taxes minus subsidies are added to get from factor cost to market prices. 2.Depreciation (or capital consumption) is added to get from net domestic product to grossdomestic product.

[edit] Expenditure approach
http://en.wikipedia.org/wiki/JEL_classification_codeshttp://en.wikipedia.org/wiki/Behavioral_economicshttp://en.wikipedia.org/wiki/Cultural_economicshttp://en.wikipedia.org/wiki/Cultural_economicshttp://en.wikipedia.org/wiki/Evolutionary_economicshttp://en.wikipedia.org/wiki/Evolutionary_economicshttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Development_economicshttp://en.wikipedia.org/wiki/Development_economicshttp://en.wikipedia.org/wiki/Economic_historyhttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Monetary_economicshttp://en.wikipedia.org/wiki/Monetary_economicshttp://en.wikipedia.org/wiki/Financial_economicshttp://en.wikipedia.org/wiki/Public_economicshttp://en.wikipedia.org/wiki/Welfare_economicshttp://en.wikipedia.org/wiki/Welfare_economicshttp://en.wikipedia.org/wiki/Health_economicshttp://en.wikipedia.org/wiki/Health_economicshttp://en.wikipedia.org/wiki/Education_economicshttp://en.wikipedia.org/wiki/Education_economicshttp://en.wikipedia.org/wiki/Welfarehttp://en.wikipedia.org/wiki/Demographic_economicshttp://en.wikipedia.org/wiki/Demographic_economicshttp://en.wikipedia.org/wiki/Labour_economicshttp://en.wikipedia.org/wiki/Labour_economicshttp://en.wikipedia.org/wiki/Managerial_economicshttp://en.wikipedia.org/wiki/Managerial_economicshttp://en.wikipedia.org/wiki/Business_economicshttp://en.wikipedia.org/wiki/Information_economicshttp://en.wikipedia.org/wiki/Game_theoryhttp://en.wikipedia.org/wiki/Industrial_organizationhttp://en.wikipedia.org/wiki/Law_and_economicshttp://en.wikipedia.org/wiki/Agricultural_economicshttp://en.wikipedia.org/wiki/Agricultural_economicshttp://en.wikipedia.org/wiki/Natural_resource_economicshttp://en.wikipedia.org/wiki/Natural_resource_economicshttp://en.wikipedia.org/wiki/Environmental_economicshttp://en.wikipedia.org/wiki/Environmental_economicshttp://en.wikipedia.org/wiki/Ecological_economicshttp://en.wikipedia.org/wiki/Ecological_economicshttp://en.wikipedia.org/wiki/Urban_economicshttp://en.wikipedia.org/wiki/Rural_economicshttp://en.wikipedia.org/wiki/Regional_sciencehttp://en.wikipedia.org/wiki/Economic_geographyhttp://en.wikipedia.org/wiki/Category:Economics_listshttp://en.wikipedia.org/wiki/List_of_scholarly_journals_in_economicshttp://en.wikipedia.org/wiki/List_of_scholarly_journals_in_economicshttp://en.wikipedia.org/wiki/List_of_important_publications_in_economicshttp://en.wikipedia.org/wiki/Category:Economicshttp://en.wikipedia.org/wiki/Category:Economicshttp://en.wikipedia.org/wiki/List_of_economics_topicshttp://en.wikipedia.org/wiki/List_of_economics_topicshttp://en.wikipedia.org/wiki/List_of_economistshttp://en.wikipedia.org/wiki/Economic_ideologyhttp://en.wikipedia.org/wiki/Economic_ideologyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Portal:Business_and_economicshttp://en.wikipedia.org/wiki/Template:Economics_sidebarhttp://en.wikipedia.org/wiki/Template:Economics_sidebarhttp://en.wikipedia.org/wiki/Template_talk:Economics_sidebarhttp://en.wikipedia.org/wiki/Template_talk:Economics_sidebarhttp://en.wikipedia.org/w/index.php?title=Template:Economics_sidebar&action=edithttp://en.wikipedia.org/w/index.php?title=Template:Economics_sidebar&action=edithttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=2http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=3http://en.wikipedia.org/wiki/JEL_classification_codeshttp://en.wikipedia.org/wiki/Behavioral_economicshttp://en.wikipedia.org/wiki/Cultural_economicshttp://en.wikipedia.org/wiki/Evolutionary_economicshttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Development_economicshttp://en.wikipedia.org/wiki/Economic_historyhttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Monetary_economicshttp://en.wikipedia.org/wiki/Financial_economicshttp://en.wikipedia.org/wiki/Public_economicshttp://en.wikipedia.org/wiki/Welfare_economicshttp://en.wikipedia.org/wiki/Health_economicshttp://en.wikipedia.org/wiki/Education_economicshttp://en.wikipedia.org/wiki/Welfarehttp://en.wikipedia.org/wiki/Demographic_economicshttp://en.wikipedia.org/wiki/Labour_economicshttp://en.wikipedia.org/wiki/Managerial_economicshttp://en.wikipedia.org/wiki/Business_economicshttp://en.wikipedia.org/wiki/Information_economicshttp://en.wikipedia.org/wiki/Game_theoryhttp://en.wikipedia.org/wiki/Industrial_organizationhttp://en.wikipedia.org/wiki/Law_and_economicshttp://en.wikipedia.org/wiki/Agricultural_economicshttp://en.wikipedia.org/wiki/Natural_resource_economicshttp://en.wikipedia.org/wiki/Environmental_economicshttp://en.wikipedia.org/wiki/Ecological_economicshttp://en.wikipedia.org/wiki/Urban_economicshttp://en.wikipedia.org/wiki/Rural_economicshttp://en.wikipedia.org/wiki/Regional_sciencehttp://en.wikipedia.org/wiki/Economic_geographyhttp://en.wikipedia.org/wiki/Category:Economics_listshttp://en.wikipedia.org/wiki/List_of_scholarly_journals_in_economicshttp://en.wikipedia.org/wiki/List_of_important_publications_in_economicshttp://en.wikipedia.org/wiki/Category:Economicshttp://en.wikipedia.org/wiki/List_of_economics_topicshttp://en.wikipedia.org/wiki/List_of_economistshttp://en.wikipedia.org/wiki/Economic_ideologyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Portal:Business_and_economicshttp://en.wikipedia.org/wiki/Template:Economics_sidebarhttp://en.wikipedia.org/wiki/Template_talk:Economics_sidebarhttp://en.wikipedia.org/w/index.php?title=Template:Economics_sidebar&action=edithttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=2http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=3


5/19

In contemporary economies, most things produced are produced for sale, and sold.Therefore, measuring the total expenditure of money used to buy things is a way ofmeasuring production. This is known as the expenditure method of calculating GDP.Note that if you knit yourself a sweater, it is production but does not get counted as GDPbecause it is never sold. Sweater-knitting is a small part of the economy, but if one counts

some major activities such as child-rearing (generally unpaid) as production, GDP ceasesto be an accurate indicator of production. Similarly, if there is a long term shift from non-market provision of services (for example cooking, cleaning, child rearing, do-it yourselfrepairs) to market provision of services, then this trend toward increased marketprovision of services may mask a dramatic decrease in actual domestic production,resulting in overly optimistic and inflated reported GDP. This is particularly a problemfor economies which have shifted from production economies to service economies.

[edit] Components of GDP by expenditure

Components of U.S. GDP

GDP (Y) is a sum ofConsumption (C), Investment (I), Government Spending (G)and Net Exports (X - M).

Y = C + I + G + (X M)

Here is a description of each GDP component:

C (consumption) is normally the largest GDP component in the economy,consisting of private (household final consumption expenditure) in the economy.These personal expenditures fall under one of the following categories:durablegoods, non-durable goods, and services. Examples include food, rent, jewelry,gasoline, and medical expenses but does not include the purchase of new housing.

I (investment) includes business investment in equipments for example and doesnot include exchanges of existing assets. Examples include construction of a new
http://en.wikipedia.org/wiki/Service_economyhttp://en.wikipedia.org/wiki/Service_economyhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=4http://en.wikipedia.org/wiki/Household_final_consumption_expenditurehttp://en.wikipedia.org/wiki/Durable_goodshttp://en.wikipedia.org/wiki/Durable_goodshttp://en.wikipedia.org/wiki/Durable_goodshttp://en.wikipedia.org/wiki/File:GDP_Categories_-_United_States.pnghttp://en.wikipedia.org/wiki/File:GDP_Categories_-_United_States.pnghttp://en.wikipedia.org/wiki/Service_economyhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=4http://en.wikipedia.org/wiki/Household_final_consumption_expenditurehttp://en.wikipedia.org/wiki/Durable_goodshttp://en.wikipedia.org/wiki/Durable_goods


6/19

mine, purchase of software, or purchase of machinery and equipment for afactory. Spending by households (not government) on new houses is also includedin Investment. In contrast to its colloquial meaning, 'Investment' in GDP does notmean purchases offinancial products. Buying financial products is classed as'saving', as opposed to investment. This avoids double-counting: if one buys

shares in a company, and the company uses the money received to buy plant,equipment, etc., the amount will be counted toward GDP when the companyspends the money on those things; to also count it when one gives it to thecompany would be to count two times an amount that only corresponds to onegroup of products. Buying bondsorstocksis a swapping ofdeeds, a transfer ofclaims on future production, not directly an expenditure on products.

G (government spending) is the sum ofgovernment expenditures on final goodsand services. It includes salaries ofpublic servants, purchase of weapons for themilitary, and any investment expenditure by a government. It does not include anytransfer payments, such as social security orunemployment benefits.

X (exports) represents gross exports. GDP captures the amount a country

produces, including goods and services produced for other nations' consumption,therefore exports are added. M (imports) represents gross imports. Imports are subtracted since imported

goods will be included in the terms G, I, orC, and must be deducted to avoidcounting foreign supply as domestic.

A fully equivalent definition is that GDP (Y) is the sum offinal consumptionexpenditure (FCE),gross capital formation (GCF), and net exports (X - M).

Y = FCE + GCF+ (X M)

FCE can then be further broken down by three sectors (households, governments andnon-profit institutions serving households) and GCF by five sectors (non-financialcorporations, financial corporations, households, governments and non-profit institutionsserving households). The advantage of this second definition is that expenditure issystematically broken down, firstly, by type of final use (final consumption or capitalformation) and, secondly, by sectors making the expenditure, whereas the first definitionpartly follows a mixed delimitation concept by type of final use and sector.

Note that C, G, and I are expenditures on final goods and services; expenditures onintermediate goods and services do not count. (Intermediate goods and services are thoseused by businesses to produce other goods and services within the accounting year.[4] )

According to the U.S. Bureau of Economic Analysis, which is responsible for calculatingthe national accounts in the United States, :In general, the source data for theexpenditures components are considered more reliable than those for the incomecomponents [see income method, below]."[5]

[edit] Examples of GDP component variables
http://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Deedhttp://en.wikipedia.org/wiki/Deedhttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Final_goodshttp://en.wikipedia.org/wiki/Public_servantshttp://en.wikipedia.org/wiki/Transfer_paymenthttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Unemployment_benefitshttp://en.wikipedia.org/wiki/Unemployment_benefitshttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Final_consumption_expenditurehttp://en.wikipedia.org/wiki/Final_consumption_expenditurehttp://en.wikipedia.org/wiki/Final_consumption_expenditurehttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Gross_capital_formationhttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Gross_capital_formationhttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Non-profit_institutions_serving_households_(NPISH)http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Non-profit_institutions_serving_households_(NPISH)http://en.wikipedia.org/wiki/Final_goodshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-3http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-3http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-4http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=5http://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Deedhttp://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Final_goodshttp://en.wikipedia.org/wiki/Public_servantshttp://en.wikipedia.org/wiki/Transfer_paymenthttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Unemployment_benefitshttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Final_consumption_expenditurehttp://en.wikipedia.org/wiki/Final_consumption_expenditurehttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Gross_capital_formationhttp://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Non-profit_institutions_serving_households_(NPISH)http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Non-profit_institutions_serving_households_(NPISH)http://en.wikipedia.org/wiki/Final_goodshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-3http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-4http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=5


7/19

C, I, G, and NX(net exports): If a person spends money to renovate a hotel to increaseoccupancy rates, the spending represents private investment, but if he buys shares in aconsortium to execute the renovation, it issaving. The former is included whenmeasuring GDP (in I), the latter is not. However, when the consortium conducted its ownexpenditure on renovation, that expenditure would be included in GDP.

If a hotel is a private home, spending for renovation would be measured as consumption,but if a government agency converts the hotel into an office for civil servants, thespending would be included in the public sector spending, orG.

If the renovation involves the purchase of a chandelierfrom abroad, that spending wouldbe counted as C, G, orI (depending on whether a private individual, the government, or abusiness is doing the renovation), but then counted again as an import and subtractedfrom the GDP so that GDP counts only goods produced within the country.

If a domestic producer is paid to make the chandelier for a foreign hotel, the payment

would not be counted as C, G, orI, but would be counted as an export.

GDP real growth rates for 2008

[edit] Income approach

Another way of measuring GDP is to measure total income. If GDP is calculated this wayit is sometimes called Gross Domestic Income (GDI), or GDP(I). GDI should provide thesame amount as the expenditure method described above. (By definition, GDI = GDP. Inpractice, however, measurement errors will make the two figures slightly off whenreported by national statistical agencies.)

Total income can be subdivided according to various schemes, leading to variousformulae for GDP measured by the income approach. A common one is:

GDP = compensation of employees + gross operating surplus + gross mixed

income + taxes less subsidies on production and imports

GDP = COE + GOS + GMI + TP & M - SP & M

Compensation of employees (COE) measures the total remuneration toemployees for work done. It includes wages and salaries, as well as employercontributions to social security and other such programs.

Gross operating surplus (GOS) is the surplus due to owners of incorporatedbusinesses. Often calledprofits, although only a subset of total costs aresubtracted from gross output to calculate GOS.
http://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Measuring_GDPhttp://en.wikipedia.org/wiki/Chandelierhttp://en.wikipedia.org/wiki/Chandelierhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=6http://en.wikipedia.org/wiki/Compensation_of_employeeshttp://en.wikipedia.org/wiki/Gross_operating_surplushttp://en.wikipedia.org/wiki/Gross_mixed_incomehttp://en.wikipedia.org/wiki/Gross_mixed_incomehttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Gross_outputhttp://en.wikipedia.org/wiki/File:Gdp_real_growth_rate_2007_CIA_Factbook.PNGhttp://en.wikipedia.org/wiki/File:Gdp_real_growth_rate_2007_CIA_Factbook.PNGhttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Measuring_GDPhttp://en.wikipedia.org/wiki/Chandelierhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=6http://en.wikipedia.org/wiki/Compensation_of_employeeshttp://en.wikipedia.org/wiki/Gross_operating_surplushttp://en.wikipedia.org/wiki/Gross_mixed_incomehttp://en.wikipedia.org/wiki/Gross_mixed_incomehttp://en.wikipedia.org/wiki/Social_securityhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Gross_output


8/19

Gross mixed income (GMI) is the same measure as GOS, but for unincorporatedbusinesses. This often includes most small businesses.

The sum ofCOE, GOS and GMI is called total factor income; it is the income of all ofthe factors of production in society. It measures the value of GDP at factor (basic) prices.

The difference between basic prices and final prices (those used in the expenditurecalculation) is the total taxes and subsidies that the government has levied or paid on thatproduction. So adding taxes less subsidies on production and imports converts GDP atfactor costto GDP(I).

Total factor income is also sometimes expressed as:

Total factor income = Employee compensation + Corporate profits +Proprieter's income + Rental income + Net interest[6]

Yet another formula for GDP by the income method is:[citation needed]

GDP= R + I+ P+ SA + W

where R : rentsI : interestsP : profitsSA : statistical adjustments (corporate income taxes, dividends, undistributed corporateprofits)W : wagesNote the mnemonic, "ripsaw".

A "production boundary" that delimits what will be counted as GDP.

"One of the fundamental questions that must be addressed in preparing the national economicaccounts is how to define the production boundary that is, what parts of the myriad humanactivities are to be included in or excluded from the measure of the economic production." [7]

All output for market is at least in theory included within the boundary. Market output isdefined as that which is sold for "economically significant" prices; economicallysignificant prices are "prices which have a significant influence on the amounts producersare willing to supply and purchasers wish to buy."[8] An exception is that illegal goodsand services are often excluded even if they are sold at economically significant prices(Australia and the United States exclude them).

This leaves non-market output. It is partly excluded and partly included. First, "naturalprocesses without human involvement or direction" are excluded.[9] Also, there must be aperson or institution that owns or is entitled to compensation for the product. An exampleof what is included and excluded by these criteria is given by the United States' nationalaccounts agency: "the growth of trees in an uncultivated forest is not included inproduction, but the harvesting of the trees from that forest is included."[10]
http://en.wikipedia.org/wiki/Factor_costhttp://en.wikipedia.org/wiki/Factor_costhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-5http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-6http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-7http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-8http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-9http://en.wikipedia.org/wiki/Factor_costhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-5http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-6http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-7http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-8http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-9


9/19

Within the limits so far described, the boundary is further constricted by "functionalconsiderations."[11] The Australian Bureau for Statistics explains this: "The nationalaccounts are primarily constructed to assist governments and others to make market-based macroeconomic policy decisions, including analysis of markets and factorsaffecting market performance, such as inflation and unemployment." Consequently,

production that is, according to them, "relatively independent and isolated from markets,"or "difficult to value in an economically meaningful way" [i.e., difficult to put a price on]is excluded.[12] Thus excluded are services provided by people to members of their ownfamilies free of charge, such as child rearing, meal preparation, cleaning, transportation,entertainment of family members, emotional support, care of the elderly.[13] Most otherproduction for own (or one's family's) use is also excluded, with two notable exceptionswhich are given in the list later in this section.

Nonmarket outputs that are included within the boundary are listed below. Since, bydefinition, they do not have a market price, the compilers of GDP must impute a value tothem, usually either the cost of the goods and services used to produce them, or the value

of a similar item that is sold on the market.

Goods and services provided by governments and non-profit organisations free ofcharge or for economically insignificant prices are included. The value of thesegoods and services is estimated as equal to their cost of production. This ignoresthe consumer surplus generated by an efficient and effective government suppliedinfrastructure. For example, government-provided clean water confers substantialbenefits above its cost. Ironically, lack of such infrastructure which would resultin higher water prices (and probably higher hospital and medication expenditures)would be reflected as a higher GDP. This may also cause a bias that mistakenlyfavors inefficient privatizations since some of the consumer surplus from

privatized entities' sale of goods and services are indeed reflected in GDP.

[14]

Goods and services produced for own-use by businesses are attempted to beincluded. An example of this kind of production would be a machine constructedby an engineering firm for use in its own plant.

Renovations and upkeep by an individual to a home that she owns and occupiesare included. The value of the upkeep is estimated as the rent that she couldcharge for the home if she did not occupy it herself. This is the largest item ofproduction for own use by an individual (as opposed to a business) that thecompilers include in GDP.[15] If the measure uses historical or book prices for realestate, this will grossly underestimate the value of the rent in real estate marketswhich have experienced significant price increases (or economies with generalinflation). Furthermore, depreciation schedules for houses often accelerate theaccounted depreciation relative to actual depreciation (a well built house can belived in for several hundred years - a very long time after it has been fullydepreciated). In summary, this is likely to grossly underestimate the value ofexisting housing stock on consumers' actual consumption or income.

Agricultural production for consumption by oneself or one's household isincluded.
http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-10http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-11http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-12http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-13http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-14http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-10http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-11http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-12http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-13http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-14


10/19

Services (such as chequeing-account maintenance and services to borrowers)provided by banks and other financial institutions without charge or for a fee thatdoes not reflect their full value have a value imputed to them by the compilers andare included. The financial institutions provide these services by giving thecustomer a less advantageous interest rate than they would if the services were

absent; the value imputed to these services by the compilers is the differencebetween the interest rate of the account with the services and the interest rate of asimilar account that does not have the services. According to the United StatesBureau for Economic Analysis, this is one of the largest imputed items in theGDP.[16]

[edit] GDP vs GNI

GDP can be contrasted with gross national product (GNP) orgross national income(GNI). The difference is that GDP defines its scope according to location, while GNPdefines its scope according to ownership. GDP is product produced within a country's

borders; GNP is product produced by enterprises owned by a country's citizens. The twowould be the same if all of the productive enterprises in a country were owned by its owncitizens, but foreign ownership makes GDP and GNP non-identical. Production within acountry's borders, but by an enterprise owned by somebody outside the country, counts aspart of its GDP but not its GNP; on the other hand, production by an enterprise locatedoutside the country, but owned by one of its citizens, counts as part of its GNP but not itsGDP.

To take the United States as an example, the U.S.'s GNP is the value of output producedby American-owned firms, regardless of where the firms are located. Similarly, if acountry becomes increasingly in debt, and spends large amounts of income servicing this

debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if acountry sells off its resources to entities outside their country this will also be reflectedover time in decreased GNI, but not decreased GDP. This would make the use of GDPmore attractive for politicians in countries with increasing national debt and decreasingassets.

Gross national income (GNI) equals GDI plus income receipts from the rest of the worldminus income payments to the rest of the world.

In 1991, the United States switched from using GNP to using GDP as its primarymeasure of production.[17] The relationship between United States GDP and GNP is

shown in table 1.7.5 of the National Income and Product Accounts [18] .

[edit] International standards

The international standard for measuring GDP is contained in the bookSystem ofNational Accounts (1993), which was prepared by representatives of theInternationalMonetary Fund,European Union,Organization for Economic Co-operation andDevelopment, United Nations and World Bank. The publication is normally referred to as
http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-15http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=7http://en.wikipedia.org/wiki/Measures_of_national_income_and_outputhttp://en.wikipedia.org/wiki/GNPhttp://en.wikipedia.org/wiki/Gross_National_Incomehttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-16http://en.wikipedia.org/wiki/National_Income_and_Product_Accountshttp://en.wikipedia.org/wiki/National_Income_and_Product_Accountshttp://en.wikipedia.org/wiki/National_Income_and_Product_Accountshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-17http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-17http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=8http://en.wikipedia.org/wiki/United_Nations_System_of_National_Accounts_(UNSNA)http://en.wikipedia.org/wiki/United_Nations_System_of_National_Accounts_(UNSNA)http://en.wikipedia.org/wiki/United_Nations_System_of_National_Accounts_(UNSNA)http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Organization_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Organization_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Organization_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-15http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=7http://en.wikipedia.org/wiki/Measures_of_national_income_and_outputhttp://en.wikipedia.org/wiki/GNPhttp://en.wikipedia.org/wiki/Gross_National_Incomehttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-16http://en.wikipedia.org/wiki/National_Income_and_Product_Accountshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-17http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=8http://en.wikipedia.org/wiki/United_Nations_System_of_National_Accounts_(UNSNA)http://en.wikipedia.org/wiki/United_Nations_System_of_National_Accounts_(UNSNA)http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Organization_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Organization_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/World_Bank


11/19

SNA93 to distinguish it from the previous edition published in 1968 (called SNA68)[citationneeded][why?].

SNA93 provides a set of rules and procedures for the measurement of national accounts.The standards are designed to be flexible, to allow for differences in local statistical

needs and conditions.

This section requires expansion.

[edit] National measurement

Within each country GDP is normally measured by a national government statisticalagency, as private sector organizations normally do not have access to the informationrequired (especially information on expenditure and production by governments).

Main article: National agencies responsible for GDP measurement

[edit] Interest rates

Net interest expense is atransfer payment in all sectors except the financial sector. Netinterest expenses in the financial sector are seen as productionandvalue addedand areadded to GDP.

[edit] Adjustments to GDP

When comparing GDP figures from one year to another, it is desirable to compensate for

changes in the value of money inflation or deflation. The raw GDP figure as given bythe equations above is called the nominal, or historical, or current, GDP. To make it moremeaningful for year-to-year comparisons, it may be multiplied by the ratio between thevalue of money in the year the GDP was measured and the value of money in some baseyear. For example, suppose a country's GDP in 1990 was $100 million and its GDP in2000 was $300 million; but suppose that inflation had halved the value of its currencyover that period. To meaningfully compare its 2000 GDP to its 1990 GDP we couldmultiply the 2000 GDP by one-half, to make it relative to 1990 as a base year. The resultwould be that the 2000 GDP equals $300 million x one-half = $150 million, in 1990monetary terms. We would see that the country's GDP had, realistically, increased 1.5times over that period, not 3 times, as it might appear from the raw GDP data. The GDP

adjusted for changes in money-value in this way is called the real, or constant, GDP.

The factor used to convert GDP from current to constant values in this way is called theGDP deflator. Unlike the Consumer price index, which measures inflation (or deflation rarely!) in the price of household consumer goods, the GDP deflator measures changes inthe prices all domestically produced goods and services in an economy includinginvestment goods and government services, as well as household consumption goods.[19]
http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edithttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=9http://en.wikipedia.org/wiki/National_agencies_responsible_for_GDP_measurementhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=10http://en.wikipedia.org/wiki/Transfer_paymenthttp://en.wikipedia.org/wiki/Transfer_paymenthttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=11http://en.wikipedia.org/wiki/GDP_deflatorhttp://en.wikipedia.org/wiki/Consumer_price_indexhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-18http://en.wikipedia.org/wiki/File:Wiki_letter_w.svghttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edithttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=9http://en.wikipedia.org/wiki/National_agencies_responsible_for_GDP_measurementhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=10http://en.wikipedia.org/wiki/Transfer_paymenthttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=11http://en.wikipedia.org/wiki/GDP_deflatorhttp://en.wikipedia.org/wiki/Consumer_price_indexhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-18


12/19

Constant-GDP figures allow us to calculate a GDP growth rate, which tells us how mucha country's production has increased (or decreased, if the growth rate is negative)compared to the previous year.

Real GDP growth rate for yearn = [(Real GDP in yearn) - (Real GDP in yearn -

1)]/ (Real GDP in yearn - 1)

Another thing that it may be desirable to compensate for is population growth. If acountry's GDP doubled over some period but its population tripled, the increase in GDPmay not be deemed such a great accomplishment: the average person in the country isproducing less than they were before. Per-capita GDPis the measure compensated forpopulation growth.

[edit] Cross-border comparison

The level of GDP in different countries may be compared by converting their value in

national currency according to eitherthe current currency exchange rate, or the purchasepower parity exchange rate.

Current currency exchange rate is the exchange rate in the internationalcurrency market.

Purchasing power parity exchange rate is the exchange rate based on thepurchasing power parity (PPP) of a currency relative to a selected standard(usually the United States dollar). This is a comparative (and theoretical)exchange rate, the only way to directly realize this rate is to sell an entire CPIbasket in one country, convert the cash at the currency market rate & then rebuythat same basket of goods in the other country (with the converted cash). Going

from country to country, the distribution of prices within the basket will vary;typically, non-tradable purchases will consume a greater proportion of the basket'stotal cost in the higher GDP country, per the Balassa-Samuelson effect.

The ranking of countries may differ significantly based on which method is used.

The current exchange rate methodconverts the value of goods and services usingglobal currency exchange rates. The method can offer better indications of acountry's international purchasing power and relative economic strength. Forinstance, if 10% of GDP is being spent on buying hi-tech foreign arms, thenumber of weapons purchased is entirely governed by current exchange rates,

since arms are a traded product bought on the international market. There is nomeaningful 'local' price distinct from the international price for high technologygoods.

The purchasing power parity methodaccounts for the relative effective domesticpurchasing power of the average producer or consumer within an economy. Themethod can provide a better indicator of the living standards of less developedcountries, because it compensates for the weakness of local currencies in theinternational markets. For example, India ranks 12th by nominal GDP, but fourth
http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=12http://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/CPIhttp://en.wikipedia.org/wiki/Balassa-Samuelson_effecthttp://en.wikipedia.org/wiki/Exchange_rateshttp://en.wikipedia.org/wiki/Weaponhttp://en.wikipedia.org/wiki/Weaponhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=12http://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/CPIhttp://en.wikipedia.org/wiki/Balassa-Samuelson_effecthttp://en.wikipedia.org/wiki/Exchange_rateshttp://en.wikipedia.org/wiki/Weapon


13/19

by PPP. The PPP method of GDP conversion is more relevant to non-tradedgoods and services.

There is a clear pattern of the purchasing power parity methoddecreasing the disparity inGDP between high and low income (GDP) countries, as compared to the current

exchange rate method. This finding is called the Penn effect.

For more information, see Measures of national income and output.

[edit] Standard of living and GDP

GDP per capita is not a measurement of the standard of living in aneconomy. However,it is often used as such an indicator, on the rationale that all citizens would benefit fromtheir country's increased economic production. Similarly, GDP per capita is not ameasure of personal income. GDP may increase whilereal incomes for the majoritydecline. For example, in the US from 1990 to 2006 the earnings (adjusted for inflation) of

individual workers, in private industry and services, increased by less than 0.5% per yearwhile GDP (adjusted for inflation) increased about 3.6% per year. [20]

The major advantage of GDP per capita as an indicator of standard of living is that it ismeasured frequently, widely, and consistently. It is measured frequently in that mostcountries provide information on GDP on a quarterly basis, allowing trends to be seenquickly. It is measured widely in that some measure of GDP is available for almost everycountry in the world, allowing inter-country comparisons. It is measured consistently inthat the technical definition of GDP is relatively consistent among countries.

The major disadvantage is that it is not a measure of standard of living. GDP is intended

to be a measure of total national economic activity a separate concept.

The argument for using GDP as a standard-of-living proxy is not that it is a goodindicator of the absolutelevel of standard of living, but that living standards tend to movewith per-capita GDP, so that changes in living standards are readily detected throughchanges in GDP.

[edit] Limitations of GDP to judge the health of an

economy

GDP is widely used by economists to gauge the health of an economy, as its variationsare relatively quickly identified. However, its value as an indicator for the standard ofliving is considered to be limited. Not only that, but if the aim of economic activity is toproduce ecologically sustainable increases in the overall human standard of living, GDPis a perverse measurement; it treats loss of ecosystem services as a benefit instead of acost.[21] Other criticisms of how the GDP is used include:
http://en.wikipedia.org/wiki/Penn_effecthttp://en.wikipedia.org/wiki/Measures_of_national_income_and_outputhttp://en.wikipedia.org/wiki/Measures_of_national_income_and_outputhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=13http://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Real_incomehttp://en.wikipedia.org/wiki/Real_incomehttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-19http://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Worldhttp://en.wikipedia.org/wiki/Proxy_(statistics)http://en.wiktionary.org/wiki/absolutehttp://en.wiktionary.org/wiki/absolutehttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=14http://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-20http://en.wikipedia.org/wiki/Penn_effecthttp://en.wikipedia.org/wiki/Measures_of_national_income_and_outputhttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=13http://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Real_incomehttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-19http://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Worldhttp://en.wikipedia.org/wiki/Proxy_(statistics)http://en.wiktionary.org/wiki/absolutehttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=14http://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-20


14/19

Wealth distribution GDP does not take disparity in incomes between the richand poor into account. See income inequality metricsfor discussion of a variety ofinequality-based economic measures.

Non-market transactions GDP excludes activities that are not providedthrough the market, such as household production and volunteer or unpaid

services. As a result, GDP is understated. Unpaid work conducted onFree andOpen Source Software (such as Linux) contribute nothing to GDP, but it wasestimated that it would have cost more than a billion US dollars for a commercialcompany to develop. Also, if Free and Open Source Software became identical toitsproprietary software counterparts, and the nation producing the proprietysoftware stops buying proprietary software and switches to Free and Open SourceSoftware, then the GDP of this nation would reduce, however there would be noreduction in economic production or standard of living. The work of New Zealandeconomist Marilyn Waring has highlighted that if a concerted attempt to factor inunpaid work were made, then it would in part undo the injustices of unpaid (andin some cases, slave) labour, and also provide the political transparency and

accountability necessary for democracy. Shedding some doubt on this claim,however, is the theory that won economist Douglass North the Nobel Prize in1993. North argued that the creation and strengthening of the patent system, byencouraging private invention and enterprise, became the fundamental catalystbehind the Industrial Revolution in England.

Underground economy Official GDP estimates may not take into account theunderground economy, in which transactions contributing to production, such asillegal trade and tax-avoiding activities, are unreported, causing GDP to beunderestimated.

Non-monetary economy GDP omits economies where no money comes intoplay at all, resulting in inaccurate or abnormally low GDP figures. For example,in countries with major business transactions occurring informally, portions oflocal economy are not easily registered.Bartering may be more prominent thanthe use of money, even extending to services (I helped you build your house tenyears ago, so now you help me).

GDP also ignores subsistence production. Quality improvements and inclusion of new products By not adjusting for

quality improvements and new products, GDP understates true economic growth.For instance, although computers today are less expensive and more powerfulthan computers from the past, GDP treats them as the same products by onlyaccounting for the monetary value. The introduction of new products is alsodifficult to measure accurately and is not reflected in GDP despite the fact that itmay increase the standard of living. For example, even the richest person from1900 could not purchase standard products, such as antibiotics and cell phones,that an average consumer can buy today, since such modern conveniences did notexist back then.

What is being produced GDP counts work that produces no net change or thatresults from repairing harm. For example, rebuilding after a natural disaster orwar may produce a considerable amount of economic activity and thus boostGDP. The economic value ofhealth care is another classic exampleit may raise
http://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/FOSShttp://en.wikipedia.org/wiki/FOSShttp://en.wikipedia.org/wiki/FOSShttp://en.wikipedia.org/wiki/Linuxhttp://en.wikipedia.org/wiki/Linux#Developmenthttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Marilyn_Waringhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Barter_(economics)http://en.wikipedia.org/wiki/Barter_(economics)http://en.wikipedia.org/wiki/Subsistence_productionhttp://en.wikipedia.org/wiki/Subsistence_productionhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Health_carehttp://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/FOSShttp://en.wikipedia.org/wiki/FOSShttp://en.wikipedia.org/wiki/Linuxhttp://en.wikipedia.org/wiki/Linux#Developmenthttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Marilyn_Waringhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Barter_(economics)http://en.wikipedia.org/wiki/Subsistence_productionhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Health_care


15/19

GDP if many people are sick and they are receiving expensive treatment, but it isnot a desirable situation. Alternative economic estimates, such as the standard ofliving ordiscretionary income per capita try to measure the human utility ofeconomic activity. See uneconomic growth.

Externalities GDP ignores externalitiesor economic bads such as damage to

the environment. By counting goods which increase utility but not deducting badsor accounting for the negative effects of higher production, such as morepollution, GDP is overstating economic welfare. The Genuine Progress Indicatoris thus proposed by ecological economists and green economists as a substitutefor GDP, supposing a consensus on relevant data to measure "progress". Incountries highly dependent on resource extraction or with high ecologicalfootprints the disparities between GDP and GPI can be very large, indicatingecological overshoot. Some environmental costs, such as cleaning up oil spills areincluded in GDP.

Sustainability of growth GDP is not a tool of economic projections, whichwould make it subjective, it is just a measurement of economic activity. That is

why it does not measure what is considered thesustainability of growth. Acountry may achieve a temporarily high GDP by over-exploiting natural resourcesor by misallocating investment. For example, the large deposits ofphosphatesgave the people ofNauruone of the highest per capita incomes on earth, but since1989 their standard of living has declined sharply as the supply has run out. Oil-rich states can sustain high GDPs without industrializing, but this high levelwould no longer be sustainable if the oil runs out. Economies experiencing aneconomic bubble, such as ahousing bubbleor stock bubble, or a low private-saving rate tend to appear to grow faster owing to higher consumption,mortgaging their futures for present growth. Economic growth at the expense ofenvironmental degradation can end up costing dearly to clean up.

One main problem in estimating GDP growth over time is that the purchasingpower of money varies in different proportion for different goods, so when theGDP figure is deflated over time, GDP growth can vary greatly depending on thebasket of goods used and the relative proportions used to deflate the GDP figure.For example, in the past 80 years the GDP per capita of the United States ifmeasured by purchasing power of potatoes, did not grow significantly. But if it ismeasured by the purchasing power of eggs, it grew several times. For this reason,economists comparing multiple countries usually use a varied basket of goods.

Cross-border comparisons of GDP can be inaccurate as they do not take intoaccount local differences in the quality of goods, even when adjusted forpurchasing power parity. This type of adjustment to an exchange rate iscontroversial because of the difficulties of finding comparable baskets of goods tocompare purchasing power across countries. For instance, people in country Amay consume the same number of locally produced apples as in country B, butapples in country A are of a more tasty variety. This difference in material wellbeing will not show up in GDP statistics. This is especially true for goods that arenot traded globally, such as housing.

Transfer pricing on cross-border trades between associated companies may distortimport and export measures[citation needed].
http://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Discretionary_incomehttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Uneconomic_growthhttp://en.wikipedia.org/wiki/Externalitieshttp://en.wikipedia.org/wiki/Externalitieshttp://en.wikipedia.org/wiki/Badshttp://en.wikipedia.org/wiki/Genuine_Progress_Indicatorhttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Phosphatehttp://en.wikipedia.org/wiki/Phosphatehttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Economic_bubblehttp://en.wikipedia.org/wiki/Economic_bubblehttp://en.wikipedia.org/wiki/Housing_bubblehttp://en.wikipedia.org/wiki/Housing_bubblehttp://en.wikipedia.org/wiki/Housing_bubblehttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/Transfer_pricinghttp://en.wikipedia.org/wiki/Transfer_pricinghttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Discretionary_incomehttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Uneconomic_growthhttp://en.wikipedia.org/wiki/Externalitieshttp://en.wikipedia.org/wiki/Badshttp://en.wikipedia.org/wiki/Genuine_Progress_Indicatorhttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Phosphatehttp://en.wikipedia.org/wiki/Nauruhttp://en.wikipedia.org/wiki/Economic_bubblehttp://en.wikipedia.org/wiki/Housing_bubblehttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/Transfer_pricinghttp://en.wikipedia.org/wiki/Wikipedia:Citation_needed


16/19

As a measure of actual sale prices, GDP does not capture the economic surplusbetween the price paid and subjective value received, and can thereforeunderestimate aggregate utility.

Simon Kuznets in his very first report to the US Congress in 1934 said:[22]

...the welfare of a nation can, therefore, scarcely be inferred from a measure of nationalincome...

In 1962, Kuznets stated:[23]

Distinctions must be kept in mind between quantity and quality of growth, between costsand returns, and between the short and long run. Goals for more growth should specifymore growth of what and for what.

[edit] Alternatives to GDP

Human development index (HDI) - HDI uses GDP as a part of its calculation andthen factors in indicators of life expectancy and education levels.

Genuine progress indicator (GPI) orIndex of Sustainable Economic Welfare(ISEW) - The GPI and the ISEW attempt to address many of the above criticismsby taking the same raw information supplied for GDP and then adjust for incomedistribution, add for the value of household and volunteer work, and subtract forcrime and pollution.

Gross national happiness (GNH) - GNH measures quality of life or socialprogress in more holistic and psychological terms than GDP.

Gini coefficient - The Gini coefficient measures the disparity of income within a

nation. Wealth estimates - The World Bankhas developed a system for combining

monetary wealth with intangible wealth (institutions and human capital) andenvironmental capital.[24]

Private Product Remaining - Murray Newton Rothbard and other Austrianeconomists argue as if government spending is taken from productive sectors andproduces goods that consumers do not want, it is a burden on the economy andthus should be deducted. In his book, America's Great Depression, Rothbardargues that even government surpluses from taxation should be deducted to createan estimate of PPR.

Some people have looked beyond standard of living at a broader sense ofquality of lifeor well-being:

European Quality of Life Survey - The survey, first published in 2005, assessedquality of life across European countries through a series of questions on overallsubjective life satisfaction, satisfaction with different aspects of life, and sets ofquestions used to calculate deficits of time, loving, being and having.[25]
http://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Simon_Kuznetshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-21http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-22http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=15http://en.wikipedia.org/wiki/Human_development_indexhttp://en.wikipedia.org/wiki/Human_development_indexhttp://en.wikipedia.org/wiki/Genuine_progress_indicatorhttp://en.wikipedia.org/wiki/Genuine_progress_indicatorhttp://en.wikipedia.org/wiki/Index_of_Sustainable_Economic_Welfarehttp://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Gini_coefficienthttp://en.wikipedia.org/wiki/Gini_coefficienthttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-23http://en.wikipedia.org/wiki/Private_Product_Remaininghttp://en.wikipedia.org/wiki/Private_Product_Remaininghttp://en.wikipedia.org/wiki/Murray_Newton_Rothbardhttp://en.wikipedia.org/wiki/America's_Great_Depressionhttp://en.wikipedia.org/wiki/America's_Great_Depressionhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Quality_of_lifehttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-24http://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Simon_Kuznetshttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-21http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-22http://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=15http://en.wikipedia.org/wiki/Human_development_indexhttp://en.wikipedia.org/wiki/Genuine_progress_indicatorhttp://en.wikipedia.org/wiki/Index_of_Sustainable_Economic_Welfarehttp://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Gini_coefficienthttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-23http://en.wikipedia.org/wiki/Private_Product_Remaininghttp://en.wikipedia.org/wiki/Murray_Newton_Rothbardhttp://en.wikipedia.org/wiki/America's_Great_Depressionhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Quality_of_lifehttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-24


17/19

Gross national happiness - The Centre for Bhutanese Studies in Bhutan is workingon a complex set of subjective and objective indicators to measure 'nationalhappiness' in various domains (living standards, health, education, eco-systemdiversity and resilience, cultural vitality and diversity, time use and balance, goodgovernance, community vitality and psychological well-being). This set of

indicators would be used to assess progress towards gross national happiness,which they have already identified as being the nation's priority, above GDP. Happy Planet Index - The happy planet index (HPI) is an index of human well-

being and environmental impact, introduced by the New Economics Foundation(NEF) in 2006. It measures the environmental efficiency with which human well-being is achieved within a given country or group. Human well-being is definedin terms ofsubjective life satisfactionand life expectancy while environmentalimpact is defined by the Ecological Footprint.

[edit] Lists of countries by their GDP

Lists of countries by GDP List of countries by GDP (nominal) , (per capita) List of countries by GDP (PPP) , (per capita), (per hour) List of countries by GDP growth List of countries by GDP (real) growth rate , (per capita) List of countries by GDP sector composition List of countries by future GDP estimates (PPP) , (per capita), (nominal)

[edit] See also

Chained volumeseries Eco-sufficiency Green gross domestic

product Gross domestic

product per barrel Gross output

Gross regionaldomestic product

Gross state product Gross value added Gross world product Intermediate

consumption Inventory investment

List of countries byaverage wage

List of countries byhousehold income List of economic

reports by U.S.government agencies

Misery index(economics)

National averagesalary

Potential outputNatural grossdomestic product

Real gross domesticproduct

[edit] Bibliography
http://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Happy_Planet_Indexhttp://en.wikipedia.org/wiki/Happy_Planet_Indexhttp://en.wikipedia.org/wiki/New_Economics_Foundationhttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Ecological_Footprinthttp://en.wikipedia.org/wiki/Ecological_Footprinthttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=16http://en.wikipedia.org/wiki/Lists_of_countries_by_GDPhttp://en.wikipedia.org/wiki/Lists_of_countries_by_GDPhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_workedhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_growthhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_growthhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_estimates_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_estimates_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_per_capita_estimates_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_(nominal)_estimateshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=17http://en.wikipedia.org/wiki/Chained_volume_serieshttp://en.wikipedia.org/wiki/Chained_volume_serieshttp://en.wikipedia.org/wiki/Chained_volume_serieshttp://en.wikipedia.org/wiki/Eco-sufficiencyhttp://en.wikipedia.org/wiki/Eco-sufficiencyhttp://en.wikipedia.org/wiki/Green_gross_domestic_producthttp://en.wikipedia.org/wiki/Green_gross_domestic_producthttp://en.wikipedia.org/wiki/Green_gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_product_per_barrelhttp://en.wikipedia.org/wiki/Gross_domestic_product_per_barrelhttp://en.wikipedia.org/wiki/Gross_domestic_product_per_barrelhttp://en.wikipedia.org/wiki/Gross_outputhttp://en.wikipedia.org/wiki/Gross_outputhttp://en.wikipedia.org/wiki/Gross_regional_domestic_producthttp://en.wikipedia.org/wiki/Gross_regional_domestic_producthttp://en.wikipedia.org/wiki/Gross_regional_domestic_producthttp://en.wikipedia.org/wiki/Gross_state_producthttp://en.wikipedia.org/wiki/Gross_state_producthttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_world_producthttp://en.wikipedia.org/wiki/Gross_world_producthttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Inventory_investmenthttp://en.wikipedia.org/wiki/Inventory_investmenthttp://en.wikipedia.org/wiki/List_of_countries_by_average_wagehttp://en.wikipedia.org/wiki/List_of_countries_by_average_wagehttp://en.wikipedia.org/wiki/List_of_countries_by_average_wagehttp://en.wikipedia.org/wiki/List_of_countries_by_household_incomehttp://en.wikipedia.org/wiki/List_of_countries_by_household_incomehttp://en.wikipedia.org/wiki/List_of_countries_by_household_incomehttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/Misery_index_(economics)http://en.wikipedia.org/wiki/Misery_index_(economics)http://en.wikipedia.org/wiki/Misery_index_(economics)http://en.wikipedia.org/wiki/National_average_salaryhttp://en.wikipedia.org/wiki/National_average_salaryhttp://en.wikipedia.org/wiki/National_average_salaryhttp://en.wikipedia.org/wiki/Potential_outputhttp://en.wikipedia.org/wiki/Potential_outputhttp://en.wikipedia.org/wiki/Real_gross_domestic_producthttp://en.wikipedia.org/wiki/Real_gross_domestic_producthttp://en.wikipedia.org/wiki/Real_gross_domestic_producthttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=18http://en.wikipedia.org/wiki/Gross_national_happinesshttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Happy_Planet_Indexhttp://en.wikipedia.org/wiki/New_Economics_Foundationhttp://en.wikipedia.org/wiki/Subjective_life_satisfactionhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Ecological_Footprinthttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=16http://en.wikipedia.org/wiki/Lists_of_countries_by_GDPhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_workedhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_growthhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_estimates_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_per_capita_estimates_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_future_GDP_(nominal)_estimateshttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=17http://en.wikipedia.org/wiki/Chained_volume_serieshttp://en.wikipedia.org/wiki/Chained_volume_serieshttp://en.wikipedia.org/wiki/Eco-sufficiencyhttp://en.wikipedia.org/wiki/Green_gross_domestic_producthttp://en.wikipedia.org/wiki/Green_gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_product_per_barrelhttp://en.wikipedia.org/wiki/Gross_domestic_product_per_barrelhttp://en.wikipedia.org/wiki/Gross_outputhttp://en.wikipedia.org/wiki/Gross_regional_domestic_producthttp://en.wikipedia.org/wiki/Gross_regional_domestic_producthttp://en.wikipedia.org/wiki/Gross_state_producthttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_world_producthttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Inventory_investmenthttp://en.wikipedia.org/wiki/List_of_countries_by_average_wagehttp://en.wikipedia.org/wiki/List_of_countries_by_average_wagehttp://en.wikipedia.org/wiki/List_of_countries_by_household_incomehttp://en.wikipedia.org/wiki/List_of_countries_by_household_incomehttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/List_of_economic_reports_by_U.S._government_agencieshttp://en.wikipedia.org/wiki/Misery_index_(economics)http://en.wikipedia.org/wiki/Misery_index_(economics)http://en.wikipedia.org/wiki/National_average_salaryhttp://en.wikipedia.org/wiki/National_average_salaryhttp://en.wikipedia.org/wiki/Potential_outputhttp://en.wikipedia.org/wiki/Real_gross_domestic_producthttp://en.wikipedia.org/wiki/Real_gross_domestic_producthttp://en.wikipedia.org/w/index.php?title=Gross_domestic_product&action=edit&section=18


18/19

Australian Bureau for Statistics, Australian National Accounts: Concepts, Sources andMathods, 2000. Retrieved November 2009. In depth explanations of how GDP and othernational accounts items are determined.

United States Department of Commerce, Bureau of Economic Analysis, Concepts and

Methods of the United States National Income and Product AccountsPDF. RetrievedNovember 2009. In depth explanations of how GDP and other national accounts items aredetermined.

[edit] References

1. Sullivan, Arthur; Steven M. Sheffrin (1996). Economics: Principles in action.Upper Saddle River, New Jersey 074589: Pearson Prentice Hall. pp. 57, 305.ISBN0-13-063085-3.

2. French President seeks alternatives to GDP, The Guardian 14-09-2009.European Parliament, Policy Department Economic and Scientific Policy: Beyond

GDP StudyPDF (1.47 MB)3. World Bank, Statistical Manual >> National Accounts >> GDP final output,

retrieved October 2009."User's guide: Background information on GDP and GDP deflator". HMTreasury. http://www.hm-treasury.gov.uk/data_gdp_backgd.htm."Measuring the Economy: A Primer on GDP and the National Income andProduct Accounts" (PDF). Bureau of Economic Analysis.http://www.bea.gov/national/pdf/nipa_primer.pdf.

4. Thayer Watkins, San Jos State University Department of Economics, "GrossDomestic Product from the Transactions Table for an Economy", commenta

total report about GDP

Documents

Transcript of total report about GDP