No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Gross domestic product, real income and economic welfare
Abstract
As a measure of economic activity, gross domestic product (GDP) is a useful indicator of output and suitable for using in estimates of productivity. However, as a measure of welfare, it has several limitations. This article follows Sefton and Weale (1996, 2005) in producing an estimate of real income ‐ a corrected or adjusted version of GDP ‐ that is linked to current and future consumption possibilities. This measure of real income differs from real (money) GDP by taking account of capital consumption, net income and transfers from overseas, and uses a consumption deflator rather than a general GDP deflator so that output is valued in terms of consumption units.
... Iordache et al. (2011) present a model for the calculation of GDP, constructed as an econometric relation. Chamberlin (2011) approaches the relation between GDP, real income and economic welfare. Constantin (2013) analyzes the case of GDP and investments in Romania and EU. ...
... The study of the evolution of GDP in Romania can follow a multiple linear regression model (Anghelache et al. 2013, Iordache et al. 2011, Chamberlin 2011), based on, as explanatory variables, final consumption, gross investments (Constantin 2013) and inventories. The result obtained in this study can be valid, but the main drawback would be the high value of the constant term, which implies a significant influence of the factors that were not included in the model. ...
This paper presents a model that can be used for the analysis and forecast of Gross Domestic Product. The starting point of the research is the final output method used in GDP calculation. Based on this assumption, the conceptualization of the model will consider the GDP as main variable and the other measures as influence factors. The dataset was constructed using data drawn from official sources. The parameters of the model were estimated with the help of Eviews.
... Total economic output of a city or region, reflecting its economic size. This is a measure of the economic prosperity of a country or region, reflecting the economic level of an average resident 46 . GDP is included as a control variable to control for the influence of city size on urban consumption. ...
The COVID-19 outbreak has dramatically impacted the economy, particularly consumption behaviors. Studies on how consumption responses to COVID-19 can be a powerful aid for urban consumption recovery. In this paper, based on a high-frequency consumption dataset from January 6, 2020, to April 28, 2020 covering 18 sectors and dataset from the corresponding lunar period in 2021, we look at how COVID-19 changed how people spent their money by looking at patterns of recession and recovery during the pandemic. Specifically, we first explore the recession-recovery pattern of national consumption and the effects of various policies and quantify it using regression methods. Then, recession-recovery patterns across cities are widely studied. We also reveal how consumption structures change during a pandemic and the relationship between patterns of change in citizens’ consumption and the socioeconomic characteristics of cities. And the specific empirical analysis is provided through panel regression models. In general, national consumption represented a Vshaped pattern during the pandemic, experiencing a dramatic decline and a rapid rebound. Consumption is significantly inhibited by lockdown, while it is stimulated positively but gradually by easing policies. Consumption patterns at the city level are associated with socioeconomic characteristics. Cities with high-income groups experience a more significant decline, and cities with a high share of the secondary sector have a higher recovery rate in consumption. The consumption structure redistributes but does not fundamentally change. During the recession and early recovery phase, consumption related to basic living saw a significant rise, whereas leisure-related consumption dropped dramatically and recovered slowly. Our study can assist policymakers in implementing diversified market provisions and targeted lockdown policy adjustments for consumption recovery in cities with different socioeconomic backgrounds.
... Gross Domestic Product (GDP) merupakan ukuran dari total output yang diproduksi di negara tertentu. GDP seringkali digunakan untuk mendeteksi standar kualitas hidup dari waktu ke waktu dan digunakan juga untuk mengukur kondisi perekonomian lintas negara (Chamberlin, 2011). Beck et al. (2013) menjelaskan bahwa gross domestic product berkaitan dengan kredit bermasalah pada perbankan selama beberapa terakhir ini. ...
Risiko kredit merupakan risiko utama yang dihadapi perbankan karena berkaitan dengan bisnis utama perbankan. Dimana kredit bermasalah/ non-performing financing dipakai sebagai proxy dari risiko kredit. Seperti industri perbankan lainnya, dalam menjalankan kegiatannya, bank syariah juga tidak terlepas dari non performing financing atau pembiayaan bermasalah. Risiko kredit pada perbankan syariah patut untuk dikaji lebih lanjut karena perbankan syariah dinilai lebih tangguh dalam menghadapi krisis. Tujuan dari penelitian ini adalah untuk mengkaji risiko kredit pada Perbankan Syariah di Indonesia. Secara khusus, penelitian ini mengkaji risiko kredit dalam Pembiayaan Usaha Mikro Kecil dan Menengah (UMKM). Menggunakan sampel bank syariah di Indonesia, selama periode 2015-2020 dan kami menerapkan teknik data panel. Penelitian ini juga dilatarbelakangi oleh hipotesis bahwa bank-specific dan macroeconomic memengaruhi risiko kredit. Hasil penelitian kami menyatakan bahwa kredit bermasalah pada segmen UMKM di Bank Syariah dipengaruhi oleh faktor spesifik bank. Penelitian kami belum menemukan pengaruh variabel makroekonomi terhadap non-performing financing pada penyaluran pembiayaan UMKM di Bank Syariah.
... The other variable included in the study is gross national income. According to [16], the gross national income is the total domestic and foreign output claimed by residents of a country, consisting of the gross domestic product plus factor incomes earned by foreign residents minus income earned in the domestic economy by non-residents. In the data, the standard of living dimension is measured by gross national income per capita. ...
Analysis on incomplete could lead to biased estimation when using standard statistical procedure since it ignores the missing observations. The disadvantage of ignoring missing data is that the researcher might not have enough data to conduct an analysis. The main objective of the study is to compare the performance between listwise deletion (LD), mean substitution (MS) and multiple imputation (MI) method in estimating parameters. The performance will be measured through bias, standard error and 95% confidence interval of interested estimates for handling missing data with 10% missing observations. A complete empirical data set was used and assumed as population data. Ten percent of total observations in the population ere set as missing arbitrarily by generating random numbers from a uniform distribution, . Then, bias of parameter estimates and confidence interval of parameter estimates are calculated to compare the three methods. A Monte Carlo simulation was carried out to know the properties of missing data and investigated using simulated random numbers. Simulation of 1000 sampled data with 20, 50, and 100 observations and each sample is set to have 10% missing observations. Standard statistical analyses are run for each missing data and get the average of parameter estimates to calculate the bias and standard error of parameter estimates for every missing data method. The analysis was conducted by using SAS version 9.2. It was found that the MI method provided the smallest bias and standard error of parameter estimates and a narrower confidence interval compared to the LD and MS methods Meanwhile, the LD method gives a smaller bias of parameter estimates and standard error for small sample size of missing data. And, MS method is strongly recommended not to use for handling missing data because it will result in large bias and standard error of parameter estimates.
... Some researchers referred to the results of labour productivity in a continuously aging society [33]. Issues related to Gross Domestic Product, real incomes and living standards of the population were addressed and a number of issues related to renewable energy sources were analysed [34,35]. Others focused on the capacities of selected European countries to cope with the potential economic crisis caused by COVID-19, analysing selected indicators on European countries' GDP and using a linear regression to identify significant policies meant to eliminate the potential negative consequences for economic growth [36,37].The issue of wages and unemployment was addressed according to the income obtained, both the general situation in the community and the concordance between the size of the projected income and the migration decision as well as the influence of inflation [38][39][40][41]. ...
The COVID-19 pandemic crisis, which was triggered in 2019 with oscillating evolution in 2020 and 2021, was a factor that has had dramatic effects on the economic growth of countries worldwide. In the context of the pandemic crisis, population health has deteriorated; education and economic activity in all the countries around the world have been affected. The main purpose of this paper is to highlight the special situations that humanity is experiencing as a result of the unprecedented effects that the COVID-19 crisis is having on the socioeconomic evolution. Specific statistical econometric methods (such as analysis of linear correlations, multiple linear regression, analysis based on dynamics indicators, and spectral analysis, comparability based on indices) were applied to highlight the evolution and future prospects of the COVID-19 virus worldwide. The COVID-19 crisis has generated another major issue for mankind, along with global warming and the energy transition, namely, population health. For this reason, in this study, we focused on the impact of the COVID-19 crisis on population health in a broader context; the sustained growth of populations in developing countries and aging populations in developed economies.
... Also, Garin, Lester and Sims (2016) addressed a similar topic. Chamberlin (2011) was concerned with the correlation between Gross Domestic Product, real income and economic well-being. Clark and Ravazzolo (2015) analyzed a number of aspects related to performance in macroeconomic forecasting. ...
Economic growth is a goal of every country and equally of the European Community. In this sense, all national strategies related and not subordinated to the European Union’s strategy aim at economic growth, which will ensure the improvement of the quality of life. Economic growth is always achieved by the level registered by the Gross Domestic Product (Gross Domestic Product per capita) these being the most important indicators of results calculated at macroeconomic level.
The proper functioning of a country’s economy must be based, first of all, on certain correlations that are established between socio-economic variables, a context in which there must be certain proportions. The evolution of the economy in free market conditions reaches imbalances at certain times, a context in which macroeconomic stability is affected. Most often, crises, regardless of their health, economic, economic or financial nature, have the first effect of affecting macroeconomic stability. In the current conditions, when we face the health crisis, combined with the economic and financial crisis, the macroeconomic imbalance is obvious by not respecting some proportions and correlations, which must be established at the macroeconomic level. The analysis of this aspect of crises and their effect on economic correlations and macrostability is the subject of the study in this article.
Understanding patterns in forest cover change (FCC) is urgently needed to support government policies aimed at long-term sustainable forest management. Because of the struggle against forest loss, the Zagros forests (ZFs), which cover 3.5% of Iran's total land area, have been subjected to conservation policies. However, little is known about the efficacy of these strategies, and most information about dynamics of the ZFs is dependent on official data, which can be scant and unreliable. Therefore, the need for accurate statistics is felt more than ever in response to the requirements of international requests for information transparency. If positive or negative changes are recorded during the implementation of these policies, it is essential to assess the extent to which drivers were responsible for these changes. We assess the patterns of forest cover in the ZFs between 2002 and 2022 in the context of the implementation of one of Iran's most significant conservation policies. Furthermore, an evaluation of how forest dynamics relate to the main variables of FCC is performed. For this purpose, we used Landsat data and Google Earth Engine platform to calculate ZF cover dynamics for 61 counties in 11 provinces. Findings indicate that after 20 years of implementing conservation policies, the ZF cover has increased by 0.53%. Changes in the Human Development Index (HDI) and Gini indices were significant during the study period at the 95% confidence level, and the HDI demonstrated a significant correlation with Forest recovery (R = 0.151) and deforestation (R = −0.190) at the 95% confidence level. Changes in ZF have a significant relationship with distance from forests, roads, precipitation, and slope at the county level. In addition to the variables addressed in this research, conservation strategy played a positive role on ZF recovery. Findings can help clarify the changes and amount of forest cover, and have global consequences for concentrating more on improving the socioeconomic status of local people and conserving forests.
The research subject is the analysis of the impact of the value of realized investments in new fixed assets on the gross domestic product (GDP) of Serbia in the period from 2012 to 2021. The research was conducted with the aim of determining which economic activity, according to the value of realized investments, contributes the most to the creation of the value of Serbia’s GDP. The defined goal was realized by applying the multiple regression method, and the starting model contained the value of realized investments in four activities, which are: manufacturing; electricity, gas, steam and air conditioning supply; transportation and storage; agriculture, forestry and fishing. The occurrence of multicollinearity between independent variables was checked by the tolerance coefficient, VIF coefficients and Eigen values, and their values indicate the presence of weak multicollinearity, which is a consequence of the impact of realized investments in agriculture, forestry and fishing. The result of the set regression model shows that the greatest contribution to the creation of Serbia’s GDP is made by the realized investment value in the electricity, gas, steam and air conditioning supply (Standardized Beta Coefficients 0.687, Sig. = 0.012).
The impacts of human activity (denoted by population), economic, and social development (denoted by gross domestic product–GDP) on extremely wet/dry (or drought) events are important for humans to tackle extreme hazards. This research aims to investigate the variations in maximum values (SPEI_MAX) and minimum values (SPEI_MIN) of a 12 month standardized precipitation evapotranspiration index (SPEI12-month) for the selected 525 sites at different socioeconomic development levels (SDLs) (classified by population and GDP) in China between 2000–2018, and to analyze the impacts of increased population/GDP/SDLs on extremely wet/dry events. The linear correlations between SPEI12-month/SPEI_MAX/SPEI_MIN and population/GDP were conducted for all the sites. The relationship between linear slopes of population (PopuLS)/GDP(GDPLS) and SPEI_MAX (SPEI_MAXLS)/SPEI_MIN (SPEI_MINLS) were further studied. The results show that the extremely wet events denoted by SPEI_MAX become worse and the extreme drought events denoted by SPEI_MIN tend to be milder over time. The years 2016 and 2011 were extremely wet and extremely dry in China. There were general increasing trends in SPEI_MAX and decreasing trends in SPEI_MIN as the SDL increased from 1 to 6. This gradual, continuous increase/decrease potentially affected levels 5 and 6. Moreover, extremely wet events were more severe in developed big municipal cities of higher SDLs and extreme drought events were more severe for lower SDLs. This research can supply references for policy makers to prevent extreme disasters.
This study examines if and how technological innovation influences market structure of the media industry. OLS regression analysis is employed to address the following research question: How do technological innovations affect the market structure of the media industry? Results suggest that changes in the adoption rates of television and cable television influence the media industry’s market structure. The study discusses implications of these findings and recommends future related research efforts.
This paper refers to the opportunities to utilize some econometric
models in the macroeconomic studies. In this respect, authors concentrate on the possibility to use the simple linear regression model in analysing the evolution and correlation between the Gross Domestic Product and some macroeconomic aggregates. Under these circumstances, there are considered this macroeconomic indicator of outcomes as being the dependent variable, whose variation is
significantly determined by the evolutions recorded by the parameters of the economic and social development of the country. The evolution of the Gross Domestic Product is supposed to be mainly influenced by the dynamics of the investments. However, in Romania, the current economic context is characterized by relatively low values of investments, at all stages, as the internal investments are very small as value, the foreign direct investments keep also low because,
mainly, of the legal framework, and the absorption of European funds is not satisfactory. Therefore, at this stage, we focused on the investments and the final consumption as factors of GDP evolution. The value of the investments and the final consumption made at the level of Romania’s economy has been defined as independent variables. It is extremely important to define the role played by the
macroeconomic indicators as to increase/decrease the value of the Gross Domestic Product, generally speaking, and particularly in the case of Romania.
The aim of this study is to analyze the influence of employment, investment and the number of tourists towards GRDP in Yogyakarta. The data used in this research is a time series data for the period of 1999-2013. This research employed multiple regression and dynamic regression, namely partial adjustment model. The multiple regression estimation shows that employment has negative effect to GRDP, meanwhile the investment and the number of tourists have a positive relation towards dependent variable. Moreover, based on partial adjustment model, adjustment process also influences the output accumulation in Yogyakarta. Therefore, to develop the local economy, the government may invite more tourists as well as increase investment in Yogyakarta.
Gross Domestic Product (GDP) is the most commonly used measure of a country's economic activity. GDP, however, has limitations as a measure of society's well-being and of people's material living standards. This article presents alternative measures of economic activity that may be more suitable indicators of society's well-being. The article explains how the different measures are calculated and the additional insights they offer.
Productivity growth in virtually all west European countries exceeded that of the United States throughout the period 1950 to 1995. Since then American productivity performance has strengthened and that of the EU has weakened. The most important reason is contrasting experiences with Information and Communications Technology (ICT). The article argues that this may reflect a failure of European countries to update their ‘social capability’ to the requirements of a new technological epoch and points in particular to weaknesses in human capital formation and to excessive employment protection as obstacles to rapid realization of the productivity potential of ICT.
We assess the performance of France, Germany and the United Kingdom over the period 1997-2002. Gross and net output per hour worked are considerably lower in the UK than in France and Germany. GDP in France and the UK have grown at the same rates over the period although real national income in the UK has grown considerably faster than in France. Seen from the supply side, French growth is substantially attributable to growth in total factor productivity while in the UK factor inputs are more important. There is, nevertheless, a concern that, at the margin, UK growth may be depreciation-intensive and therefore of poor quality. Germany's growth has been slow because productive inputs have grown only slowly and its weak performance is probably structural rather than cyclical. There does seem to be room for substantial increases in labour input in both France and Germany to be achieved through reform to labour market conditions such as tax rates on low paid workers. This article reviews the underlying supply and demand factors which lie behind the performance of France, Germany and the United Kingdom. We look first at labour supply and then at capital investment with technical progress (growth of total factor productivity) a residual. We confirm that labour market performance is a key factor holding back the French and German economies.
Methods explained is a quarterly series of short articles explaining statistical issues and methodologies relevant to ONS and other data. As well
as defining the topic areas, the notes explain why and how these methodologies are used. Where relevant, the reader is also pointed to further
sources of information.
How should productivity and welfare be measured when the composition of the capital stock is shifting towards assets with shorter lives? What sort of adjustment, if any, should be made for depreciation? While GDP is still appropriate as a measure of output, in this paper it is argued that NDP (WNDP)—nominal net domestic product deflated by the price index for consumption—is the appropriate measure of welfare. The rate at which the WNDP frontier is shifting out over time is analogous to the rate of growth of aggregate total factor productivity (TFP). Like the latter, it may be decomposed into the contributions made by TFP growth in individual industries, though with a different pattern of weights. The argument is illustrated by the experience of the United States in the 1990s. Here net investment increased more rapidly than gross investment and both grew faster than GDP, while the aggregate depreciation rate rose. Nevertheless the aggregate capital stock grew more slowly than GDP, and depreciation as a proportion of GDP was flat. Both official NDP and WNDP have been growing a little more slowly than GDP. But the acceleration of WNDP post 1995 was as great as that of GDP. Also, the rise in the growth rate of the WNDP frontier was equal to that of aggregate TFP.
Considers what societal wellbeing is, and the main approaches emerging for how it should be measured.This article provides an overview of measuring societal wellbeing, also called quality of life or social welfare. GDP and the National Accounts measure economic wellbeing according to an internationally agreed system, but they are increasingly seen as measuring only part of societal wellbeing. The article considers what societal wellbeing is and the main approaches that are emerging for how it should be measured. Some examples are given to show how government around the UK is measuring societal wellbeing. The Organisation for Economic Co-operation and Development and other international organisations are, through the 2007 Istanbul Declaration, promoting debate about what progress means and how a shared view of societal wellbeing can be produced, based on high-quality statistics. This article is a contribution to that debate, and is aimed primarily at learning more about the needs for information on wellbeing and progress, and how it would be used. This will help the Office for National Statistics (ONS) develop its analysis programme addressing the priorities of children, ageing, public sector productivity and societal welfare, which is likely to draw initially on existing indicators and may also build on developments in ?satellite? accounts that extend the coverage and scope of the National Accounts. Economic & Labour Market Review (2007) 1, 46–52; doi:10.1057/palgrave.elmr.1410157
Outlines where it is used within ONS and discusses the key parameters of a PIMThis article outlines where the perpetual inventory method (PIM) is used within the Office for National Statistics and discusses in detail the key parameters of a PIM; the asset service life, the retirement distribution and the depreciation function. It covers why these parameters are of importance in the application of a PIM and also highlights some of the key related conceptual issues. The article then concludes with an example illustrating how a PIM can be used to estimate gross capital stock, consumption of fixed capital and net capital stock, which are the principal uses of a PIM. Economic & Labour Market Review (2008) 2, 48–52; doi:10.1057/elmr.2008.124
Develops an estimate for the UK and discusses recent trends in what could be a relevant statisticGross domestic product (GDP) measuresthe volume of goods and servicesproduced by a nation. By adjusting thismeasure to reflect movements in theterms of trade, command GDP describesthe purchasing power of a nation’soutput. For an open economy such as theUK, and given recent developments in theglobal economy such as the introductionof low-cost emerging market producers,large increases in commodity prices andexchange rate volatility, it could be arelevant statistic. This article develops anestimate of command GDP for the UK anddiscusses recent trends. Economic & Labour Market Review (2008) 2, 26–29; doi:10.1057/elmr.2008.136
Investigates some of the factors accounting for the above and why this position is now beginning to reverseUntil recently the private non-financial corporations sector was a fairly large net lender to the rest of the UK economy, reflecting relatively high gross savings and weaker capital investment. This article investigates some of the factors accounting for these trends and why this position is now beginning to reverse. Economic & Labour Market Review (2008) 2, 53–58; doi:10.1057/elmr.2008.106
While GDP is the appropriate measure of output, I argue that Weitzman's NDP (WNDP)-nominal net domestic product deflated by the price of consumption-is the appropriate measure of welfare. Total factor productivity (TFP) growth measures the shift in the GDP frontier, and there is an analogous concept for WNDP, which I call total factor welfare (TFW) growth. I calculate and compare WNDP and GDP, and TFP and TFW, for the United States in the 1990s. I find that the acceleration of WNDP post 1995 was as great as that of GDP, even though the aggregate depreciation rate was rising. Copyright 2004 Blackwell Publishing Ltd.
Methods explained: The balance of payments' Economic & Labour Market Review Available at www.statistics.gov.uk/cci/article.asp?
- G Chamberlin
Chamberlin G (2009) 'Methods explained: The balance of payments' Economic & Labour Market
Review, Vol. 3 No. 9, pp 44–51. Available at www.statistics.gov.uk/cci/article.asp?ID=2277
Economic & Labour Market Review
May 2011
How much does the UK invest in intangible assets', Queen Mary University of London Department of Economic working paper no. 578
- Giorgio Marrano
Giorgio Marrano M and Haskel J (2006) 'How much does the UK invest in intangible assets',
Queen Mary University of London Department of Economic working paper no. 578. Available at
www.economics.qmul.ac.uk/papers/doc/wp578.pdf
Dark matter-does it matter?' in Linda Yueh (ed) The Law and Economics of Globalisation: New challenges for a world in Flux
- G Chamberlin
Chamberlin G (2008c) 'Dark matter-does it matter?' in Linda Yueh (ed) The Law and Economics
of Globalisation: New challenges for a world in Flux, Edward Elgar
The concept of income in general equilibrium', National Institute of Economic and Social Research Vanoli AA history of National Accounting
- J Sefton
- M Weale
Sefton J and Weale M (2005) 'The concept of income in general equilibrium', National Institute of
Economic and Social Research
Vanoli A (2005) 'A history of National Accounting', IOS Press, Amsterdam