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Are there Business Cycles beyond GDP? Alternative Measures to GDP at Business Cycle Frequencies

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  • Maschke, Philip
  • Döpke, Jörg

Abstract

We discuss properties of alternatives or complements to GDP as a measure of welfare at business cycle frequencies. We argue that these figures are not useful to measure the welfare costs of business cycles. First, data is not available at an appropriate quality and frequency. Second, since the suggested time series sometimes correlate negatively with each other composite indices will lead by construction to very low welfare costs of business cycles. Third, cross-section and quasi-panel evidence based on different samples of countries reveals no impact of the stance of the business cycle on some suggested welfare measures.

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  • Maschke, Philip & Döpke, Jörg, 2014. "Are there Business Cycles beyond GDP? Alternative Measures to GDP at Business Cycle Frequencies," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100465, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100465
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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