Diane Coyle wrote in the Financial Times on the nature of GDP and how some economists — and the tech community — believe output is being mis-measured, which may help explain slow productivity growth in many economies.
She comments: “GDP excludes all the intermediate links in the chain and the additional value is netted out. GDP statistics shed no light on worldwide disruptions to production since the 1980s because they literally do not account for it. The definition of economic output is a matter of convention. A broader concept is gross output, which adds in the intermediate links.”
Read the article in the Financial Times online.
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