Chapter 13
... – current account: purchases and sales of goods and services (imports and exports). – financial account: purchases and sales of financial assets (cross-border borrowing and lending). – capital account: transfers of special categories of assets (capital), typically non-market, non-produced, or intang ...
... – current account: purchases and sales of goods and services (imports and exports). – financial account: purchases and sales of financial assets (cross-border borrowing and lending). – capital account: transfers of special categories of assets (capital), typically non-market, non-produced, or intang ...
Chapter No. 3 - College of Business Administration @ Kuwait
... Prof. Mohammad El-Sakka – Kuwait University ...
... Prof. Mohammad El-Sakka – Kuwait University ...
Measuring National Output and National Income
... intermediate goods Goods that are produced by one firm for use in further processing by another firm. value added The difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. © 2014 Pearson Education, Inc. ...
... intermediate goods Goods that are produced by one firm for use in further processing by another firm. value added The difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. © 2014 Pearson Education, Inc. ...
How to Calculate Contributions to Percent Change in real GDP (PDF
... * The discrepancy between the growth of the aggregate―benchmarked using the proportional Denton technique ―and the sum of the initial estimates of all the component contributions is distributed proportionally over each component. * The annualized contribution of any component is preliminarily calcul ...
... * The discrepancy between the growth of the aggregate―benchmarked using the proportional Denton technique ―and the sum of the initial estimates of all the component contributions is distributed proportionally over each component. * The annualized contribution of any component is preliminarily calcul ...
ECON 102 Tutorial 2
... Gross Domestic Product The value of all final goods and services produced within a country in a given year. There are three ways to calculate GDP. By summing either total expenditure, income or production. Typically we think of GDP=C+I+G+NX, ie, the Expenditure approach. ...
... Gross Domestic Product The value of all final goods and services produced within a country in a given year. There are three ways to calculate GDP. By summing either total expenditure, income or production. Typically we think of GDP=C+I+G+NX, ie, the Expenditure approach. ...
Using indicators to monitor real convergence
... the whole economy excluding EUROSTAT investment in housing, deflated by GDP at constant prices ...
... the whole economy excluding EUROSTAT investment in housing, deflated by GDP at constant prices ...
INTRODUCTION
... than in other Western countries such as the United Kingdom, Norway, Poland, and Luxembourg (40.0%-44.0%). In countries with a market oriented economy such as the United States, Australia, Japan, and New Zealand, government sector expenditures are 32.0%-36.0% of the GDP. Wages – Expenditure for wages ...
... than in other Western countries such as the United Kingdom, Norway, Poland, and Luxembourg (40.0%-44.0%). In countries with a market oriented economy such as the United States, Australia, Japan, and New Zealand, government sector expenditures are 32.0%-36.0% of the GDP. Wages – Expenditure for wages ...
Chap24
... consumption function shifts downward If expectations become more optimistic, then consumption function shifts upward ...
... consumption function shifts downward If expectations become more optimistic, then consumption function shifts upward ...
Gross Domestic Product, 2010
... These estimates are based on limited source data and are subject to revision. In this news release, “consumer spending” refers to “personal consumption expenditures” and “government spending” refers to “government consumption expenditures and gross investment.” ...
... These estimates are based on limited source data and are subject to revision. In this news release, “consumer spending” refers to “personal consumption expenditures” and “government spending” refers to “government consumption expenditures and gross investment.” ...
GDP
... • Changes in business inventory. - If total output exceeds current sales, inventories build up. - If businesses are able to sell more than they currently produce, this entry will be a negative number. • Noninvestment transactions – despite how the term “investment” is used by the general public, inv ...
... • Changes in business inventory. - If total output exceeds current sales, inventories build up. - If businesses are able to sell more than they currently produce, this entry will be a negative number. • Noninvestment transactions – despite how the term “investment” is used by the general public, inv ...
gross domestic product of the czech republic before and after
... research and development, small tools and military assets. The aim of this paper is the introduction of the main changes in the methodology of national accounts and presentation of the first results based on ESA 2010 (Eurostat, 2013) on the historical time series of the Czech GDP. The paper also con ...
... research and development, small tools and military assets. The aim of this paper is the introduction of the main changes in the methodology of national accounts and presentation of the first results based on ESA 2010 (Eurostat, 2013) on the historical time series of the Czech GDP. The paper also con ...
Investment Behavior
... • The accelerator hypothesis assumes that the desired stock of capital (K*) is a multiple of expected sales: K* = v*Ye • Net investment is the change in the capital stock: In = ∆K = K – K-1 Assuming that capital is acquired quickly, In = K* - K*-1 In = v*∆Y* • When there is an acceleration in busi ...
... • The accelerator hypothesis assumes that the desired stock of capital (K*) is a multiple of expected sales: K* = v*Ye • Net investment is the change in the capital stock: In = ∆K = K – K-1 Assuming that capital is acquired quickly, In = K* - K*-1 In = v*∆Y* • When there is an acceleration in busi ...
Quarterly national accounts and seasonal adjustment
... Tourism satellite accounts (TSA) • A conceptual framework for tourism satellite accounts was released in 2000, followed by an updated version in 2008 • Tourism is defined as the activities of persons travelling for leisure or business and staying in places outside their usual environment for less t ...
... Tourism satellite accounts (TSA) • A conceptual framework for tourism satellite accounts was released in 2000, followed by an updated version in 2008 • Tourism is defined as the activities of persons travelling for leisure or business and staying in places outside their usual environment for less t ...
1. The National Income Identity.
... You should be somewhat familiar with national income accounting in the closed economy context, from Econ 311. We will build on that to develop the basic accounting identities relevant to the open economy. ...
... You should be somewhat familiar with national income accounting in the closed economy context, from Econ 311. We will build on that to develop the basic accounting identities relevant to the open economy. ...
Slide 1
... Expenditures by government for final goods (weapons, pencils, school building) and services (military salaries, DPR salaries, school teachers salaries). Some of these expenditures are counted as government consumption and some are counted as government gross investment ...
... Expenditures by government for final goods (weapons, pencils, school building) and services (military salaries, DPR salaries, school teachers salaries). Some of these expenditures are counted as government consumption and some are counted as government gross investment ...
What is Investment
... the more business firms will borrow • To know how much they will borrow and whether they will borrow, you need to compare the interest rate with the expected rate of profit • Even if they are investing their own money they need to make this ...
... the more business firms will borrow • To know how much they will borrow and whether they will borrow, you need to compare the interest rate with the expected rate of profit • Even if they are investing their own money they need to make this ...
Lecture-Q_Theory_Investment(Intro)
... dt = δkt−1 where dt denotes the total amount of the depreciation. We can now compute the total stock of capital in the economy at some given time t, starting with the previous stock of capital at time t − 1, adding investment, and subtracting the amount of depreciation. ...
... dt = δkt−1 where dt denotes the total amount of the depreciation. We can now compute the total stock of capital in the economy at some given time t, starting with the previous stock of capital at time t − 1, adding investment, and subtracting the amount of depreciation. ...
CHAPTER OVERVIEW
... ownership of existing assets. The sale of stock in a corporation is a transfer of part ownership of existing assets. New stock issues only dilute the share of ownership and are excluded as well. The sale of corporate bonds also represents a purely financial transaction. Corporations that are seeking ...
... ownership of existing assets. The sale of stock in a corporation is a transfer of part ownership of existing assets. New stock issues only dilute the share of ownership and are excluded as well. The sale of corporate bonds also represents a purely financial transaction. Corporations that are seeking ...
GDP – Expenditure Approach
... 5. Changes in stocks of furniture valued at SAR2 million 6. Lettuces grown in my vegetable garden but not selling 7. Timber purchased by the furniture manufacturer 8. Nizar purchase of a Saudi Airline ticket ...
... 5. Changes in stocks of furniture valued at SAR2 million 6. Lettuces grown in my vegetable garden but not selling 7. Timber purchased by the furniture manufacturer 8. Nizar purchase of a Saudi Airline ticket ...
Taxes paid by owners on the value of owner-occupied
... • Price (excluding land) of a dwelling of average age in the current year – average price (excluding land) of newly constructed dwellings in the current year – average age of dwellings – average service life of dwellings – annual growth in stock of dwellings ...
... • Price (excluding land) of a dwelling of average age in the current year – average price (excluding land) of newly constructed dwellings in the current year – average age of dwellings – average service life of dwellings – annual growth in stock of dwellings ...
Investment
... on tangible assets. We call the stock of tangible assets capital or physical capital. The unit of measure of aggregate capital is dollars. Gross Investment refers to purchases of new investment. Net Investment is Gross Investment minus depreciation. ...
... on tangible assets. We call the stock of tangible assets capital or physical capital. The unit of measure of aggregate capital is dollars. Gross Investment refers to purchases of new investment. Net Investment is Gross Investment minus depreciation. ...
Economics
... • Similarly, net domestic product(NDP) corresponds to gross domestic product (GDP) minus depreciation.[2] • Depreciation describes the devaluation of fixed capital through wear and tear associated with its use in productive activities. ...
... • Similarly, net domestic product(NDP) corresponds to gross domestic product (GDP) minus depreciation.[2] • Depreciation describes the devaluation of fixed capital through wear and tear associated with its use in productive activities. ...
Gross Domestic Product
... (T – G) and this surplus flows to the financial markets. If U.S. imports exceed U.S. exports, the United States borrows an amount equal to (M – X) from the rest of the world. Rest of world saving finances some investment in the United States. If U.S. exports exceed U.S. imports, the United States le ...
... (T – G) and this surplus flows to the financial markets. If U.S. imports exceed U.S. exports, the United States borrows an amount equal to (M – X) from the rest of the world. Rest of world saving finances some investment in the United States. If U.S. exports exceed U.S. imports, the United States le ...
Gross fixed capital formation
Gross fixed capital formation (GFCF) is a macroeconomic concept used in official national accounts such as the United Nations System of National Accounts (UNSNA), National Income and Product Accounts (NIPA) and the European System of Accounts (ESA). The concept dates back to the National Bureau of Economic Research (NBER) studies of Simon Kuznets of capital formation in the 1930s, and standard measures for it were adopted in the 1950s. Statistically it measures the value of acquisitions of new or existing fixed assets by the business sector, governments and ""pure"" households (excluding their unincorporated enterprises) less disposals of fixed assets. GFCF is a component of the expenditure on gross domestic product (GDP), and thus shows something about how much of the new value added in the economy is invested rather than consumed.GFCF is called ""gross"" because the measure does not make any adjustments to deduct the consumption of fixed capital (depreciation of fixed assets) from the investment figures. For the analysis of the development of the productive capital stock, it is important to measure the value of the acquisitions less disposals of fixed assets beyond replacement for obsolescence of existing assets due to normal wear and tear. ""Net fixed investment"" includes the depreciation of existing assets from the figures for new fixed investment, and is called net fixed capital formation.GFCF is not a measure of total investment, because only the value of net additions to fixed assets is measured, and all kinds of financial assets are excluded, as well as stocks of inventories and other operating costs (the latter included in intermediate consumption). If, for example, one examines a company balance sheet, it is easy to see that fixed assets are only one component of the total annual capital outlay.The most important exclusion from GFCF is land sales and purchases. The original reason, leaving aside complex valuation problems involved in estimating the value of land in a standard way, was that if a piece of land is sold, the total amount of land already in existence, is not regarded as being increased thereby; all that happens is that the ownership of the same land changes. Therefore, only the value of land improvement is included in the GFCF measure as a net addition to wealth. In special cases, such as land reclamation from the sea, a river or a lake (e.g. a polder), new land can indeed be created and sold where it did not exist before, adding to fixed assets. The GFCF measure always applies to the resident enterprises of a national territory, and thus if e.g. oil exploration occurs in the open seas, the associated new fixed investment is allocated to the national territory in which the relevant enterprises are resident. Data is usually provided by statistical agencies annually and quarterly, but only within a certain time-lag. Fluctuations in this indicator are often considered to show something about future business activity, business confidence and the pattern of economic growth. In times of economic uncertainty or recession, typically business investment in fixed assets will be reduced, since it ties up additional capital for a longer interval of time, with a risk that it will not pay itself off (and fixed assets may therefore also be scrapped faster). Conversely, in times of robust economic growth, fixed investment will increase across the board, because the observed market expansion makes it likely that such investment will be profitable in the future.