On some Imperfections of the Gross Domestic Product Index
Authors
Keywords
gross domestic product (GDP), green gross domestic product, black gross domestic product, sustainable development, international comparisons, economic growth
Summary
The gross domestic product is the most widespread macroeconomic index, used for macroeconomic analysis and forecasting of economic growth. Despite all its merits it can hardly be considered a perfect indicator of economic growth and nation’s welfare. One of its disadvantages is that it doesn’t record the effects connected with the exhausting of natural resources or with the negative consequences of environment pollution. In this sense the article offers an algorithm for calculating “green GDP” and “black GDP”.
Pages: 20
DOI: