The New GDP: Art and Ideas are Output Too
Aug 14, 2013
Gross domestic product (GDP), the value of all final goods and services produced within a country, is perhaps the most commonly cited economic metric. Often invoked as a measure of economic performance, textbooks tell us that it is measured as the sum of consumption, investment, government spending, and net exports in a country over a given period of time. However, as an article in this week’s Economist discusses, the historical GDP metric has not done a good job of capturing the value created by intellectual property products and original artwork. Appropriate techniques to value these and other asset classes are essential to ensure that our economic metrics continue to provide useful information on economic performance.
Read more from the Economist here.