What SHOULD we measure

Approach the total value added in the marketed

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: n development) Radlet and Perkins: Life expectancy increases as GNI per capita increases. You can look at points that have the same GNI per capita but different life expectancies Could be infectious disease issue or some other form This means something in the short term is affecting it This affects stuff in terms of public policy Look at how tight the correlation is and how big the variation in the data points are (this spurs case studies) It is usually curved with diminishing returns at around $5,000 per capita Income and Income growth: Three methods to measure income: Income approach: the total income of all individuals who reside in a country Value Added approach: the total value- added in the marketed sectors of a country Expenditure Approach: The total expenditure on final goods and services in a country All three lead to the same answer because: Total Income = Total Expenditures What does GDP exclude? Costs of economic growth Unreported transactions Informal market Distribution of goods and services Ignores labor markets (coercion, slavery, labor rights) Composition of output Transfer payments between individu...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online