The Production Account and GDP
... The SNA has undergone several revisions since the first published version by the Organization for European Economic Cooperation (OEEC) in 1952. In 1958 a minor update was published but in 1968 the United Nations Statistical Office (UNSO) made another major revision with the publication of A System o ...
... The SNA has undergone several revisions since the first published version by the Organization for European Economic Cooperation (OEEC) in 1952. In 1958 a minor update was published but in 1968 the United Nations Statistical Office (UNSO) made another major revision with the publication of A System o ...
NATIONAL INCOME AND RELATED AGGREGATES: KEY
... c) Deduct depreciation, net indirect taxes to get NDP Fc d) Add net factor income from abroad to NDP Fc to arrive at NNP FC. 7. What are the precautions to be taken while calculating national income through product method (value added method) a) Avoid double counting of production, take only value a ...
... c) Deduct depreciation, net indirect taxes to get NDP Fc d) Add net factor income from abroad to NDP Fc to arrive at NNP FC. 7. What are the precautions to be taken while calculating national income through product method (value added method) a) Avoid double counting of production, take only value a ...
Unmeasured Investment and the Puzzling U.S. Boom in the 1990s
... the business goes public or is sold. There is macroeconomic and microeconomic evidence that suggests that both types of unmeasured investment were abnormally high in the 1990s. The National Science Foundation’s (NSF) (2007) report of R&D investment shows that industry R&D relative to GDP grew by 23 ...
... the business goes public or is sold. There is macroeconomic and microeconomic evidence that suggests that both types of unmeasured investment were abnormally high in the 1990s. The National Science Foundation’s (NSF) (2007) report of R&D investment shows that industry R&D relative to GDP grew by 23 ...
Parkin-Bade Chapter 22
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
Ch11 11e Lecture Presentation
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
Real Business Cycles
... productivity ( from lower employment as well as high oil prices) lowers investment demand • Lower investment demand causes interest rates, investment, and savings to fall ...
... productivity ( from lower employment as well as high oil prices) lowers investment demand • Lower investment demand causes interest rates, investment, and savings to fall ...
Ch27S-7e
... When the price level changes, a wealth effect and substitution effects change aggregate planned expenditure and change the quantity of real GDP demanded. Figure 27.8 on the next slide illustrates the effects of a change in the price level on the AE curve, equilibrium expenditure, and the quantity of ...
... When the price level changes, a wealth effect and substitution effects change aggregate planned expenditure and change the quantity of real GDP demanded. Figure 27.8 on the next slide illustrates the effects of a change in the price level on the AE curve, equilibrium expenditure, and the quantity of ...
text hrs
... weakened, or in the limit disappears. Consequently, the quality of investment made by domestic firms under FDI control (as measured by the rate of return on capital) is improved, and the average size of investment ...
... weakened, or in the limit disappears. Consequently, the quality of investment made by domestic firms under FDI control (as measured by the rate of return on capital) is improved, and the average size of investment ...
Notes Solow Growth Model
... Korea was able to achieve a much faster long-run rate of growth than Nicragua. Why does GDP per worker increase? It would seem that it has a lot to do with the amount of capital that each worker in the economy gets to use, as we can see in the following graph: Pretty obviously, having more capital- ...
... Korea was able to achieve a much faster long-run rate of growth than Nicragua. Why does GDP per worker increase? It would seem that it has a lot to do with the amount of capital that each worker in the economy gets to use, as we can see in the following graph: Pretty obviously, having more capital- ...
NBER WORKING PAPER SERIES TAX POLICY AND INTERNATIONAL COMPETATIVENESS Lawrence H. Summers
... microeconomic aspects of tax changes. More generally, the effects of tax policies depend critically on the extent of the international capital flows which they generate. The paper examines the issue of international capital mobility both theoretically and empirically. A variety of considerations sug ...
... microeconomic aspects of tax changes. More generally, the effects of tax policies depend critically on the extent of the international capital flows which they generate. The paper examines the issue of international capital mobility both theoretically and empirically. A variety of considerations sug ...
National Output & Income
... that measures the income—wages, rents, interest, and profits—received by all factors of production in producing final goods and services. ...
... that measures the income—wages, rents, interest, and profits—received by all factors of production in producing final goods and services. ...
Parkin-Bade Chapter 22
... Disposable income is either spent on consumption goods and services, C, or saved, S. That is, ...
... Disposable income is either spent on consumption goods and services, C, or saved, S. That is, ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... input-output tables and accelerating their release to within three years after the reference year. Second, the GDP-by-industry accounts have been expanded to include gross output and intermediate input for all industries. Third, accelerated GDP-by-industry accounts are available with a lag of only f ...
... input-output tables and accelerating their release to within three years after the reference year. Second, the GDP-by-industry accounts have been expanded to include gross output and intermediate input for all industries. Third, accelerated GDP-by-industry accounts are available with a lag of only f ...
UK Investment: High, Low, Rising, Falling?
... Figure 3 shows the shares of GDP actually spent on business investment, both measured in current prices, again using the most recent OECD data available. We see that in 1999, the share of GDP actually spent on business investment was higher in the UK than in France but similar to that in Germany an ...
... Figure 3 shows the shares of GDP actually spent on business investment, both measured in current prices, again using the most recent OECD data available. We see that in 1999, the share of GDP actually spent on business investment was higher in the UK than in France but similar to that in Germany an ...
The weakness of business investment in the
... and it only returned to its pre-crisis level more than six years after the start of the crisis. This behaviour masks a high degree of heterogeneity across countries, as seen in the lefthand panel of Chart 2, which shows the magnitude of the decline and subsequent recovery in a selection of developed ...
... and it only returned to its pre-crisis level more than six years after the start of the crisis. This behaviour masks a high degree of heterogeneity across countries, as seen in the lefthand panel of Chart 2, which shows the magnitude of the decline and subsequent recovery in a selection of developed ...
the linkage between public and private investment
... While economists agree that investment has a positive effect on economic growth, they have not produced a consensus on whether public or private investment has a larger impact on economic activity and whether there is a link between the two. A frequently cited study by Aschauer [1989] highlighted th ...
... While economists agree that investment has a positive effect on economic growth, they have not produced a consensus on whether public or private investment has a larger impact on economic activity and whether there is a link between the two. A frequently cited study by Aschauer [1989] highlighted th ...
How Large Are The Political Costs of Fiscal Austerity?
... Given the potential for bias in our OLS estimates, we also pursue an instrumental variables strategy where we use growth shocks to a country’s trading partners interacted with the cost of capital in international markets. The idea here is that a decline in GDP growth of trading partners will lead to ...
... Given the potential for bias in our OLS estimates, we also pursue an instrumental variables strategy where we use growth shocks to a country’s trading partners interacted with the cost of capital in international markets. The idea here is that a decline in GDP growth of trading partners will lead to ...
Parkin-Bade Chapter 22
... Real GDP with a Fixed Price Level Aggregate Planned Expenditure The relationship between aggregate planned expenditure and real GDP can be described by an aggregate expenditure schedule, which lists the level of aggregate expenditure planned at each level of real GDP. The relationship can also be d ...
... Real GDP with a Fixed Price Level Aggregate Planned Expenditure The relationship between aggregate planned expenditure and real GDP can be described by an aggregate expenditure schedule, which lists the level of aggregate expenditure planned at each level of real GDP. The relationship can also be d ...
From quantity to sustainable quality Increasing intellectual capital
... incomes and public services are perceived as shrinking. As societies become more diverse, indicators based on averages or "the typical consumer" are not sufficient to fulfill the information needs from citizens and policy-makers. A stark example is rising average wage in the United States in the pas ...
... incomes and public services are perceived as shrinking. As societies become more diverse, indicators based on averages or "the typical consumer" are not sufficient to fulfill the information needs from citizens and policy-makers. A stark example is rising average wage in the United States in the pas ...
NBER WORKING PAPER SERIES AN ASSESSMENT OF THE NEW MERCHANTILISM
... economies, which causes them to increase assets holdings due to similar effects as those that result from financial globalization. Thus, the surge in reserves in this scenario is not the direct result of self-insurance against higher business cycle volatility inside Sudden Stop countries, but the i ...
... economies, which causes them to increase assets holdings due to similar effects as those that result from financial globalization. Thus, the surge in reserves in this scenario is not the direct result of self-insurance against higher business cycle volatility inside Sudden Stop countries, but the i ...
O
... current dollars and measure the fraction of income absorbed by different categories of expenditure. This is the appropriate concept for the purpose at hand, identifying those consumption areas where rising expenditures have squeezed out saving. As can be seen in the lower panel of Table 2, however, ...
... current dollars and measure the fraction of income absorbed by different categories of expenditure. This is the appropriate concept for the purpose at hand, identifying those consumption areas where rising expenditures have squeezed out saving. As can be seen in the lower panel of Table 2, however, ...
The Multiplier
... Adjusting Quantities and Prices Real firms don’t hold their prices constant for long. When firms have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. The AS-AD model explains the simultaneous determination of real GDP and t ...
... Adjusting Quantities and Prices Real firms don’t hold their prices constant for long. When firms have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. The AS-AD model explains the simultaneous determination of real GDP and t ...
Ch27-7e-lecture
... disposable income, other things remaining the same, is the consumption function. The relationship between saving and disposable income, other things remaining the same, is the saving function. © 2010 Pearson Education Canada ...
... disposable income, other things remaining the same, is the consumption function. The relationship between saving and disposable income, other things remaining the same, is the saving function. © 2010 Pearson Education Canada ...
NBER WORKING PAPER SERIES TOWARDS A THEORY OF CURRENT ACCOUNTS Jaume Ventura
... See Obstfeld and Rogoff [1995] and Razin [1995] for formal or mathematical presentations of this model. ...
... See Obstfeld and Rogoff [1995] and Razin [1995] for formal or mathematical presentations of this model. ...
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.