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MEASURING PRODUCTION AND INCOME, Chapter 2
MEASURING PRODUCTION AND INCOME, Chapter 2

... Because domestic prices (in $) are lower in poor countries. In news reports you hear that in this country they earn 400 per capita and year. I have often thought: How can they survive? The explanation is that this income figure is not PPPadjusted. Purchasing Power Parity means that prices expressed ...
Current Account Norms in Natural Resource Rich and Capital
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... Resource-rich developing countries (RRDCs) with exhaustible natural resources have to manage windfalls that may induce signi…cant macroeconomic e¤ects in their economies, including on external stability.1 During a windfall, they must decide how much to consume or save out of this transitory and size ...
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... composite capital good is therefore 1 + µp: We assume further that the domestic capital good and the domestic output are identical and that the cost of installing one unit of the capital good is C(I) units of the domestic good. ...
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... Studies using aggregative infrastructure data fail to reveal which types of infrastructure have the most significant impact on agricultural productivity. Dercon and others (2007) observe that those studies did not state whether it is the quantity of infrastructure that matters or its quality, and i ...
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... sector between 2000 and 2005 has shown a much better improvement due to government focused policy attention. ...
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... budgetary discipline on the basis of two criteria, namely: (a) whether the ratio of the planned or actual government deficit to gross domestic product (GDP) exceeds the reference value of 3% (unless either the ratio has declined substantially and continuously and reached a level that comes close to ...
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... 1. The real GDP of one country must be converted into the same currency units as the real GDP of the other country. 2. The goods and services in both countries must be valued at the same prices. ...
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... national income. For example, many thinkers attribute Nigeria’s poor economic performance to its oil endowment. Sala-i-martin and Subramanian (2003) write“… all the oil revenues— US$350 billion in total—did not seem to add to the standard of living at all… the main problem affecting the Nigerian eco ...
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... real wages grew twice as fast as they did in the industrial core (1.79 vs 0.90 per annum), but they grew no faster than the periphery average, and at less than 70 per cent of the Scandinavian rate. On the other hand, the wagerental ratio rose faster in Ireland than in Scandinavia. As a unit, the wes ...
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The Cost of Conflict for Children: Five Years of the Syria Crisis

... day the conflict continues, it deepens the deprivation of Syria’s children today and into the future. And yet, while we and they can’t afford not to have peace, sadly, we still seem to be able to afford war. Five years on, appeals for humanitarian aid remain chronically and substantially underfunded ...
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... currency depreciations, and to a lesser extent, increases in administrative prices and indirect taxes. Following slower growth in the emerging economies, global trade witnessed a slowdown of about 4 percent in the first half of 2015 compared with the second half of 2014. The fall, the first since 20 ...
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... 1. THE ANALYSIS OF BUSINESS CYCLE SYNCHRONISATION The definition of business cycles has changed over time. In early studies, a business cycle, the so-called classical cycle, was defined as sequences of expansions and contractions in series representing the levels of economic development. This approa ...
Alternative measures of well-being
Alternative measures of well-being

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Economic growth



Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Of more importance is the growth of the ratio of GDP to population (GDP per capita, which is also called per capita income). An increase in growth caused by more efficient use of inputs (such as physical capital, population, or territory) is referred to as intensive growth. GDP growth caused only by increases in the amount of inputs available for use is called extensive growth.In economics, ""economic growth"" or ""economic growth theory"" typically refers to growth of potential output, i.e., production at ""full employment"". As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how countries can advance their economies. The latter is the study of the economic development process particularly in low-income countries.Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced. Measurement of economic growth uses national income accounting. Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure.
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