GDP vs EVA as an Economic Indicator

Cachanosky, Nicolas (2009): GDP vs EVA as an Economic Indicator.

Abstract

This article discusses the limits and charactristics of GDP as economic indicator and suggests that an Economic Value Added (EVA®) approach would be more accurate and appropriate to measure macroeconomic performance. The main difference is that EVA® takes into consideration the invested capital cost of opportunity, while GDP is focused on quantity of production; an EVA® approach will be focused on the economic result of production activities. A final comment is made on the characteristics and limits of a GDP calculated using the EVA®

• Item Type: MPRA Paper
• Language: English
• Keywords: GDP; Growth; Economic Value Added; EVA
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General; E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth ; Environmental Accounts

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