tag:blogger.com,1999:blog-2198942534740642384.post2277305511486296497..comments2023-10-24T03:16:41.009-07:00Comments on Econometrics Beat: Dave Giles' Blog: Not All Measures of GDP are Created EqualDave Gileshttp://www.blogger.com/profile/05389606956062019445noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2198942534740642384.post-44565897041258997092016-12-19T14:23:37.342-08:002016-12-19T14:23:37.342-08:00Thanks - you're absolutely correct. I have ame...Thanks - you're absolutely correct. I have amended my wording.Dave Gileshttps://www.blogger.com/profile/05389606956062019445noreply@blogger.comtag:blogger.com,1999:blog-2198942534740642384.post-57787194574428193722016-12-19T11:26:41.303-08:002016-12-19T11:26:41.303-08:00Dave,
Great blog...always interesting. In this p...Dave,<br /><br />Great blog...always interesting. In this post, I don't think we expect the line in Figure 5 to be flat...gross output is simply the sum of the outputs of all the industries, and so includes output of intermediate goods (like, say, sheet steel), while the GDP concept is "final" goods and services (or the value of payments to factors). Gross output counts the steel as many times as it shows up in final products (like autos for sale to consumers). The GDP concept only includes the value of final products (like the auto for sale to consumers). So the line actually shows us the fluctuations of industries that are more intermediate compared with industries (or the total) that includes only final goods. Interesting and useful for business cycle analysis; hard to think of a realistic situation in which the line would be flat...<br /><br />Best....<br /><br />RMMRMMhttps://www.blogger.com/profile/04817787960468702807noreply@blogger.com