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1he history of the concept of GDP should be distinguished from
the history of changes in !aysof estimating it. 1he /alue added by
firms is relati/ely easy to calculate from their accounts, butthe
/alue added by the public sector, by financial industries, and by
intangible asset creation ismore comple0. 1hese acti/ities are
increasingly important in de/eloped economies, and theinternational
con/entions go/erning their estimation and their inclusion or
e0clusion in GDP
regularly change in an attempt to keep up !ith industrial
ad/ances. 9n the !ords of one academiceconomist "1he actual number
for GDP is therefore the product of a /ast patch!ork of
statisticsand a complicated set of processes carried out on the ra!
data to fit them to the conceptualframe!ork."4' and before.
Determining GDP
Economics
World GDP (PPP) per capita by country(2012)
Index
utline
!ate"ory
History
Types
Classifcation
http://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-6http://en.wikipedia.org/wiki/Angus_Maddisonhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/Index_of_economics_articleshttp://en.wikipedia.org/wiki/Outline_of_economicshttp://en.wikipedia.org/wiki/Category:Economicshttp://en.wikipedia.org/wiki/File:World_map_GDP_per_capita.svghttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-6http://en.wikipedia.org/wiki/Angus_Maddisonhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/Index_of_economics_articleshttp://en.wikipedia.org/wiki/Outline_of_economicshttp://en.wikipedia.org/wiki/Category:Economics
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e
GDP can be determined in three !ays, all of !hich should, in
principle, gi/e the same result.1hey are the production (or output
or /alue added) approach, the income approach,or thee0penditure
approach.
1he most direct of the three is the production approach, !hich
sums the outputs of e/ery class ofenterprise to arri/e at the
total. 1he e0penditure approach !orks on the principle that all of
theproduct must be bought by somebody, therefore the /alue of the
total product must be eual topeople2s total e0penditures in buying
things. 1he income approach !orks on the principle that theincomes
of the producti/e factors ("producers," collouially) must be eual
to the /alue of theirproduct, and determines GDP by finding the sum
of all producers2 incomes.?*
Production approach
1his approach mirrors the +-Ddefinition gi/en abo/e.
1. &sti%ate the "ross alue o$ do%estic output out o$ the
%any ariousecono%ic actiities7
2. Deter%ine the inter%ediate consu%ption8 i.e.8 the cost o$
%aterial8 suppliesand serices used to produce +nal "oods or
serices.
9. Deduct inter%ediate consu%ption $ro% "ross alue to obtain the
"ross alueadded.
http://en.wikipedia.org/wiki/Welfarehttp://en.wikipedia.org/wiki/Category:Economics_listshttp://en.wikipedia.org/wiki/List_of_economistshttp://en.wikipedia.org/wiki/List_of_important_publications_in_economicshttp://en.wikipedia.org/wiki/List_of_economics_journalshttp://en.wikipedia.org/wiki/Portal:Business_and_economicshttp://en.wikipedia.org/wiki/Template:Economics_sidebarhttp://en.wikipedia.org/wiki/Template_talk:Economics_sidebarhttp://en.wikipedia.org/w/index.php?title=Template:Economics_sidebar&action=edithttp://en.wikipedia.org/wiki/Income_approachhttp://en.wikipedia.org/wiki/Income_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-7http://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/File:Emblem-money.svghttp://en.wikipedia.org/wiki/Welfarehttp://en.wikipedia.org/wiki/Category:Economics_listshttp://en.wikipedia.org/wiki/List_of_economistshttp://en.wikipedia.org/wiki/List_of_important_publications_in_economicshttp://en.wikipedia.org/wiki/List_of_economics_journalshttp://en.wikipedia.org/wiki/Portal:Business_and_economicshttp://en.wikipedia.org/wiki/Template:Economics_sidebarhttp://en.wikipedia.org/wiki/Template_talk:Economics_sidebarhttp://en.wikipedia.org/w/index.php?title=Template:Economics_sidebar&action=edithttp://en.wikipedia.org/wiki/Income_approachhttp://en.wikipedia.org/wiki/Gross_domestic_product#cite_note-7http://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Intermediate_consumption
