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GDP as a measure of economic growth and welfare: brief critical assessment

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Listed:
  • Daniel Bulin
  • Ionela Baltatescu

Abstract

The purpose of our paper is to briefly assess the role of GDP in measuring growth and welfare or in getting insight into the state of an economy. In this view, we propose a synthetic theoretical and historical review of national accounting, emphasizing the most important ideological underpinnings and theoretical suppositions of GDP for gauging economic growth and welfare. The paper includes: (a) a short historical review of national accounting; (b) a very brief reminder of the methods of measuring GDP; (c) an assessment of GDP’s ideological underpinnings; (d) shortcomings and limitations of GDP in measuring growth and welfare.

Suggested Citation

  • Daniel Bulin & Ionela Baltatescu, 2015. "GDP as a measure of economic growth and welfare: brief critical assessment," National Strategies Observer (NOS), Institute for World Economy, Romanian Academy, vol. 1.
    • Handle: RePEc:iem:nosiem:v:1:y:2015:id:2822000009352019
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    References listed on IDEAS

    as
    1. Simon Kuznets & Lillian Epstein & Elizabeth Jenks, 1946. "National Income and Its Composition, 1919-1938, Volume II," NBER Books, National Bureau of Economic Research, Inc, number kuzn41-3.
    2. Barro Robert J, 2009. "Demand Side Voodoo Economics," The Economists' Voice, De Gruyter, vol. 6(2), pages 1-4, February.
    3. Diane Coyle, 2014. "GDP: A Brief but Affectionate History," Economics Books, Princeton University Press, edition 1, number 10183.
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    More about this item

    Keywords

    national accounting history; methods of measuring GDP; GDP as a measure of economic growth and welfare; ideological underpinnings of GDP statistic;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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