Redefining the Economical Power of Nations

Kiss, Christian (2013): Redefining the Economical Power of Nations.

Abstract

This paper is (over the formulas) self explaining . The measurement of economies no longer by GDP alone, but by an Index that includes other important factors as well, a So-cial factors relativized GDP. This index cuts out the part of the GDP that is long term fro-zen up by social transfers (using the highly aggregated GINI coefficient).

Social factors relativized GDP: GDP – GDP x GINI = K_Index Written differently: (1 – GINI) x GDP = K_Index Inflation indexed Version: (1 – GINI – Inflation) x GDP = K_Index_Infl.

Productivity Index: K_Index / Labor Force = K_PROD Inflation indexed Productivity Index: K_Index_Infl. / Labor Force = K_PROD_Infl.

Debt-to-K_Index: National debt / K_Index = K_Debt Debt-to-K_Index_Infl: National debt / K_Index_Infl. = K_Debt_Infl.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Indicator, GDP, GNP, GINI, Productivity, Inequality, Income Distribution, Poverty Growth, Poverty Measurement, Macro Models, International Economic Order, International Industrial Order, Econometrics, Econometric Methods, Econometric Modeling, Macroeconometrics, Mathematical Methods, Mathematical Models, Numerical Methods, National Income and Product Account, Economic Growth, Wage, Economic Growth, Multisector Growth, Saving Growth, Aggregate Produc-tivity, Gross National Product, Gross Domestic Product, Macroeconomic Model, Macroeconomic Time Series, Micro to Macro, National Income Accounting, National Wealth, Econometric Modeling
• 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 > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General; 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

References

Hohlstein M. (2003): Lexikon der Volkswirtschaft, 2. Auflage, DTV Verlag München, 2003, ISBN 3-423-05898-6