Redefining the Economical Power of Nations: An international macroeconomic model that introduces a future aspect into the GDP

Kiss, Christian (2013): Redefining the Economical Power of Nations: An international macroeconomic model that introduces a future aspect into the GDP.

Abstract

The paper challenges the current common rankings of economies when measured over the GDP, and introduces a set of new Indices based on the factors GDP, Gini Coefficient and Inflation. This Social factors relativized GDP cuts out that part of the GDP, which is structurally long term frozen up by social transfers.

Furthermore, the paper introduces an economic model that implements the future aspect into the GDP over the factors of change in capital expenditures and change in private investments.

The first part of the pa-per explains the κ_Index models, the factors that were applied, as well as the reasons for the choice. The second part of the paper shows variations of the κ_Index including a few ideal-typical examples. The final part asks some critical questions and concludes the pa-per.

Basic social factors relativized GDP: κ _Index = GDP – GDP x Gini is (1 – GINI) x GDP Inflation indexed Version: κ _Index_Infl. = (1 – Gini – Inflation) x GDP Future aspect of GDP With Private Investment variable: κp = (B + B × ΔP) – (B × G) With Private Investment variable and inflation: κip = (B + B × ΔP) - [(B × G)+(B × In)]

Productivity Index: κ_PROD = κ_Index / Labor Force = κ_PROD Inflation indexed Productivity Index: κ_PROD_Infl. = κ_Index_Infl. / Labor Force

Debt-to- κ _Index κ _Debt = National debt / κ_Index Debt-to- κ _Index_Inflation κ _Debt_Infl. = National debt / κ_Index_Infl.

• Item Type: MPRA Paper
• Language: English
• Keywords: Econometric Modelling, Economic Indicator, Macro Models, International Economic Order, GDP, GNP, GINI, Productivity, Capital Expenditure, Private Investment, Inequality, Income Distribution, Poverty Growth, Poverty Measurement, International Industrial Order, Econometrics, Econometric Methods, , Macroeconometrics, Mathematical Methods, Mathematical Models
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General; E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth ; Environmental Accounts; F - International Economics > F0 - General > F02 - International Economic Order and Integration; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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