Introduction to Macroeconomics. Sebastian Koch Lauder Business School Summer term 2016

Size: px
Start display at page:

Download "Introduction to Macroeconomics. Sebastian Koch Lauder Business School Summer term 2016"

Transcription

1 Introduction to Macroeconomics Sebastian Koch Lauder Business School Summer term 2016

2 Course Outline 2

3 LBS Intranet CIS Access to course description via LBS Intranet: https://cis.lbs.ac.at/ Check the course webpage regularly! Check you s regularly! 3

4 Grading To pass the course you have to obtain at least 60 points. You can achieve a max of 100 Points: Exercise / assignments / quizzes : 25 Points Midterm exam: 25 Points Final exam: 50 Points Total: 100 Points Pimp your grade: Bonus points are awarded for class participation They help improving your grade: e.g. 58,4% change to 60% (improve to grade 4) e.g % change to 91% (improve to grade 1) Note: by default you are requested to read necessary chapters in advance of the respective lecture to facilitate your learning progress. 4

5 Absence A maximum of 6 contact hours absence allowed! More than 6 contact hours absent promts a retake exam. 5

6 Questions, help, remarks? Please write to Please specify the subject field: macro1 - [and then your concern] 6

7 Textbook Economics N.Gregory Mankiw Mark Taylor Second Edition 7

8 Course Description Updated Chapters refer to book of Mankiw & Taylor Session 1: Ch23 Measuring GDP Session 2: Ch24 Measuring the cost of living Session 3: Ch25 Production & Growth Session 4: Ch28 Unemployment & the natural Rate Session 5: Review and completion of above sessions Session 6: Midterm Exam: APRIL 11 + Ch26 Saving, Investment, financial system Session 7: Ch29 The Monetary System Session 8: Ch30 Money Growth and Inflation Session 9: Ch34 AS-AD model Session 10: Ch35 Monetary and Fiscal Policy Session 11: Ch36 Trade-off between Inflation and Unemployment Session 12: Review Session 13: Final Exam: JUNE 27 8

9 Introduction: GDP Chapter 23 9

10 Have you ever heard of the term GDP? I hope so!

11 GDP of different countries (highest and lowest 30) Millions, billion, or trillions? Source: The World Bank

12 GDP growth of different countries Source: The World Bank

13 Who generates the data on GDP? Here the latest release from Eurostat

14 Who generates the data on GDP? Here the latest release from Eurostat

15 Remember? Our simple economy For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. Every dollar of spending by some buyer is a dollar of income for some seller.

16 Three approaches one GDP Understanding the framework https://www.destatis.de/de/publikationen/thematisch/volkswirtschaftlichegesamtrechnungen/zusammenhaengepdf_ pdf? blob=publicationfile

17 Three approaches to measuring GDP (1) The expenditure approach is the sum of all final expenditures within an economy. In equation form, this is as follows: GDP(E) = household final consumption expenditure + final consumption expenditure of (NPISHs) (non-profit institutions serving households) + general government final consumption expenditure + gross capital formation + exports imports Final consumption expenditure is expenditure on goods and services purchased for the last time and not to be consumed or transformed in a production process. Gross capital formation comprises investment in fixed assets, changes in inventories and net acquisition of valuables. Exports and imports relate to trade in goods and services with the rest of the world and do not include other cross-border financial flows Sebastian Koch 17

18 Three approaches to measuring GDP (2) The production approach is the sum of all production activity within an economy. In the form of an equation, this is described by: GDP(P) = output intermediate consumption + taxes on products subsidies on products Output is all the goods and services produced, whilst intermediate consumption comprises all the goods and services consumed or transformed in a production process. The taxes and subsidies are included in order to put all three approaches on a consistent valuation basis. (at market prices not producer prices) Sebastian Koch 18

19 Three approaches to measuring GDP (3) The income approach is the sum of all factor incomes within an economy. This could also be described as the sum of incomes directly generated by productive activity. In equation form: GDP(I) = compensation of employees + gross operating surplus + mixed income + taxes on production and products subsidies on production and products Compensation of employees is all income from employment, including employers pension and social contributions. Operating surplus is primarily made up of trading profits and rental income, whilst mixed income is the income of the self-employed. Sebastian Koch 19

20 Measuring GDP Chapter 23 20

21 The measurement of GDP Gross domestic product (GDP) is a measure of the income and expenditures of an economy. It is the total market value of all final goods and services produced within a country in a given period of time. For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. Every dollar of spending by some buyer is a dollar of income for some seller. 21

22 The definition of GDP GDP is the Market Value... Output is valued at market prices.... Of All Final... It records only the value of final goods, not intermediate goods (the value is counted only once).... Goods and Services... It includes both tangible goods (food, clothing, cars) and intangible services (haircuts, house cleaning, doctor visits).... Produced... It includes goods and services currently produced, not transactions involving goods produced in the past.... Within a Country... It measures the value of production within the geographic confines of a country.... In a Given Period of Time. It measures the value of production that takes place within a specific interval of time, usually a year or a quarter (three months). 22

23 The components of GDP According to the expenditure approach, GDP (Y) is the sum of the following: Consumption (C) (this includes NPISHs) Investment (I) Government Purchases (G) Net Exports (NX) Y = C + I + G + NX 23

24 The components of GDP Consumption (C): The spending by households on goods and services. Goods include household spending on durable goods, such as cars and appliances like washing machines and fridges, and non-durable goods, such as food and clothing. Services include such intangible items as haircuts and medical care. Investment (I): Investment is the purchase of goods that will be used in the future to produce more goods and services. It is the sum of purchases of capital equipment, inventories and structures. Investment in structures includes expenditure on new housing. By convention, the purchase of a new house is the one form of household spending categorized as investment rather than consumption. The treatment of inventory accumulation is noteworthy. When Aston Martin produces a car and, instead of selling it, adds it to its inventory, Aston Martin is assumed to have purchased the car for itself. That is, the national income accountants treat the car as part of Aston Martin s investment spending. 24

25 The components of GDP Government Purchases (G): Government purchases include spending on goods and services by local and national governments. It includes the salaries of government workers and spending on public works. It does not include transfer payments because they are not made in exchange for currently produced goods or services. Net Exports (NX): Net exports equal the purchases of domestically produced goods by foreigners (exports) minus the domestic purchases of foreign goods (imports). A domestic firm s sale to a buyer in another country, such as the sale of Aston Martin cars to customers in the USA, increases UK net exports. 25

26 The components of GDP over time in Austria Institute for Advanced Studies (IHS) Net Exports BRUTTOINVESTITIONEN ÖFFENTLICHER KONSUM PRIVATER KONSUM

27 The components in % of GDP across Europe Eurostat, % 80% 60% 40% 20% 0% -20% Kosovo Montenegro Serbia Greece Cyprus Macedonia Portugal United Kingdom Bulgaria Lithuania Latvia Romania Italy Poland Croatia Spain EU28 Slovakia EA19 France Finland Germany Switzerland Malta Austria Slovenia Iceland Belgium Estonia Hungary Czech Republic Denmark Sweden Netherlands Ireland Norway Luxembourg Net Exports Final consumption expenditure of general government Gross fixed capital formation Household and NPISH final consumption expenditure 27

28 Real versus nominal GDP 28

29 Assume you need to find out about GDP There is a problem: There is a problem: Imagine you have to download data from Eurostat. There are several types of GDP to choose from: QUESTION: WHICH ONE WOULD YOU SELECT? 29

30 Excursus: The present value - measuring the time value of money (ch.27) Question 1: Imagine that someone offered to give you 100 today or 100 in ten years. Which would you choose? Answer: Getting 100 today is better, because you can always deposit the money in a bank, still have it in ten years, and earn interest on the 100 along the way. The lesson: money today is more valuable than the same amount of money in the future. Question 2: Now consider a harder question: imagine that someone offered you 100 today or 200 in ten years. Which would you choose? Answer: To answer this question, you need some way to compare sums of money from different points in time. Economists do this with a concept called present value. The present value of any future sum of money is the amount today that would be needed, at current interest rates, to produce that future sum. 30

31 Excursus: The present value: measuring the time value of money (ch.27) 31

32 Most important differentiation: Real vs. nominal GDP An accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator. Nominal GDP values the production of goods and services at current prices. (= Eurostat unit: Current prices, million euro) Real GDP values the production of goods and services at constant prices. (= Eurostat unit: Chain linked volumes (2010), million euro ) EXPERIMENT: DOWNLOAD DATA FROM EUROSTAT AND CALCULATE GDP GROWTH RATES FROM NOMINAL DATA AND FROM REAL DATA. WHAT IS THE DIFFERENCE? 32

33 Real VS. Nominal GDP 33

34 The GDP Deflator The GDP deflator is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100. It tells us the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced. Nominal GDP GDP deflator = Real GDP 100 NOTE: It is something similar to what we usually understand as inflation, just that the measure of inflation corresponds only to households and the GDP deflator corresponds to all components, not only consumption 34

35 GDP and economic well-being 35

36 GDP and economic well-being GDP is the best single measure of the economic well-being of a society. GDP per person tells us the mean income and expenditure of the people in the economy. Higher GDP per person indicates a higher standard of living. However, it must be clear that GDP is not a perfect measure of the happiness or quality of life. 36

37 GDP per capita, PPP PPP= Purchasing power parity LOOK AT THE SCALE!!! 160, ,000 The richest 30 nations by GDP per capita, PPP (current international $) Source: World Bank 120, ,000 80,000 60,000 40,000 20,

38 GDP per capita, PPP PPP= Purchasing power parity LOOK AT THE SCALE!!! 2,500 The poorest 30 nations by GDP per capita, PPP (current international $) Source: World Bank 2,000 1,500 1, And then we still do not know anything about the distribution of GDP within the countries! 38

39 GDP and economic well-being Some things that contribute to well-being are not included in GDP, such as The value of leisure. The value of a clean environment. The value of almost all activity that takes place outside of markets, such as the value of the time parents spend with their children and the value of volunteer work. 39

40 Gross national income vs life expectancy at birth GNI per capita, PPP (current international $): GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Source: World Bank Indicators 40

41 Gross national income vs adult literacy rate Source: World Bank Indicators 41

42 GDP and economic well-being Alternative Concepts OECD Your Better Life Index 11 subindicators combined (Housing, Income, Jobs, Community, Education, Environment, Governance, Health, Life Satisfaction, Safety) UNDP Human Development Index 4 subindicators combined (life expectancy at birth, mean years of schooling, expected years of schooling, gross national income per capita) 42

Measuring a Nation s s Income. Chapter 23. Measuring GDP

Measuring a Nation s s Income. Chapter 23. Measuring GDP Chapter 23. Measuring GDP Measuring a Nation s s Income Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets.

More information

Quarterly Gross Domestic Product of Montenegro 1st quarter 2016

Quarterly Gross Domestic Product of Montenegro 1st quarter 2016 Government of Montenegro Statistical Office of Montenegro Quarterly Gross Domestic Product of Montenegro 1st quarter 2016 The release presents the preliminary data for quarterly gross domestic product

More information

Quarterly Gross Domestic Product of Montenegro for 2014

Quarterly Gross Domestic Product of Montenegro for 2014 MONTENEGRO STATISTICAL OFFICE R E L E A S E No: 88 Podgorica, 9 April 015 When using the data, please name the source Quarterly Gross Domestic Product of Montenegro for 014 The release presents the preliminary

More information

1. Beer Production - Overview (in hl) Beer Production Chart 2012 (in hl)... 3

1. Beer Production - Overview (in hl) Beer Production Chart 2012 (in hl)... 3 Beer Statistics Edition 2013 Period 2008-2012 Content Table 1. Beer Production - Overview 2008-2012 (in 1.000 hl)... 2 2. Beer Production Chart 2012 (in 1.000 hl)... 3 3. Beer Consumption - Overview 2008-2012

More information

187/2014-5 December 2014. EU28, euro area and United States GDP growth rates % change over the previous quarter

187/2014-5 December 2014. EU28, euro area and United States GDP growth rates % change over the previous quarter 187/2014-5 December 2014 This News Release has been revised following an error in the data for Gross Fixed Capital Formation. This affects both the growth of GFCF and its contribution to GDP growth. All

More information

99/2015-9 June 2015. EU28, euro area and United States GDP growth rates % change over the previous quarter

99/2015-9 June 2015. EU28, euro area and United States GDP growth rates % change over the previous quarter 2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1

More information

Measuring a Nation s Income

Measuring a Nation s Income Measuring a Nation s Income Chapter 10 Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department,

More information

GROSS DOMESTIC PRODUCT (GDP)

GROSS DOMESTIC PRODUCT (GDP) 1. Size of GDP 2. GDP growth 3. GDP per capita 13 1. Size of GDP Gross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period. While

More information

Measuring a Nation s Income THE MEASUREMENT OF GROSS DOMESTIC PRODUCT. In this chapter, look for the answers to these questions:

Measuring a Nation s Income THE MEASUREMENT OF GROSS DOMESTIC PRODUCT. In this chapter, look for the answers to these questions: In this chapter, look for the answers to these questions: What is Gross Domestic Product (GDP)? 5 How is GDP related to a nation s total income and spending? What are the components of GDP? How is GDP

More information

Facts: Population Baldwin & Wyplosz 2006

Facts: Population Baldwin & Wyplosz 2006 Facts: Population Facts: Population 6 big nations: > 35 million (Germany, the UK, France, Italy, Spain and Poland). Netherlands: 16 million people. 8 small nations (size of a big city): 8 to 11 million:

More information

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) Gross Domestic Product (GDP) 1. Size of GDP 2. GDP growth 3. GDP per capita 15 1. Size of GDP 1. Gross Size domestic of GDP product (GDP) is the standard measure of the value of final goods and services

More information

NERI Quarterly Economic Facts Summer 2012. 4 Distribution of Income and Wealth

NERI Quarterly Economic Facts Summer 2012. 4 Distribution of Income and Wealth 4 Distribution of Income and Wealth 53 54 Indicator 4.1 Income per capita in the EU Indicator defined National income (GDP) in per capita (per head of population) terms expressed in Euro and adjusted for

More information

Europe. JigsawGeo. Free Printable Maps for Geography Education. Try our geography games for the ipod Touch or iphone.

Europe. JigsawGeo. Free Printable Maps for Geography Education. Try our geography games for the ipod Touch or iphone. Free Printable Maps for Geography Education Map with region names shown Map without names, for coloring or quizzes Map with coordinate system, for location practice Answer key for coordinate system quiz

More information

MEASURING NATIONAL INCOME. Unit 5 Theory and measurement in the macroeconomy

MEASURING NATIONAL INCOME. Unit 5 Theory and measurement in the macroeconomy MEASURING NATIONAL INCOME Unit 5 Theory and measurement in the macroeconomy We need information on how much spending, income and output is being created in an economy over a period of time. National income

More information

Energy prices in the EU Household electricity prices in the EU rose by 2.9% in 2014 Gas prices up by 2.0% in the EU

Energy prices in the EU Household electricity prices in the EU rose by 2.9% in 2014 Gas prices up by 2.0% in the EU 92/2015-27 May 2015 Energy prices in the EU Household electricity prices in the EU rose by 2.9% in 2014 Gas prices up by 2.0% in the EU In the European Union (EU), household electricity prices 1 rose by

More information

Measuring National Output and National Income

Measuring National Output and National Income Measuring National Output and National Income 6 C H A P T E R O U T L I N E Gross Domestic Product Final Goods and Services Exclusion of Used Goods and Paper Transactions Exclusion of Output Produced Abroad

More information

GDP per capita, consumption per capita and comparative price levels in Europe

GDP per capita, consumption per capita and comparative price levels in Europe Economy and finance Author: Lars SVENNEBYE Statistics in focus 2008 GDP per capita, consumption per capita and comparative price levels in Europe Final results for 2005 and preliminary results for 2006

More information

Macroeconomics in the Global Economy. Course Overview

Macroeconomics in the Global Economy. Course Overview Course Overview v Scope and objectives of the course v Readings, assignments and web site v Exam, grades, class norms Global Trends Sovereign default? Additional defaults in Europe? Growth 2011 2012 World

More information

Measuring a Nation s Income

Measuring a Nation s Income Measuring a Nation s Income I. Review of the Definitions of Microeconomics and Macroeconomics A. Definition of microeconomics: the study of how households and firms make decisions and how they interact

More information

Hungary s labour market indicators continue to improve

Hungary s labour market indicators continue to improve Hungary s labour market indicators continue to improve Employment rate higher again in Hungary According to the latest data, the positive trend regarding growth in the number of people in employment has

More information

BULGARIAN TOURISM IN FACTS AND FIGURES (JANUARY DECEMBER 2013) 5.5 % more foreign tourists for the period January December 2013.

BULGARIAN TOURISM IN FACTS AND FIGURES (JANUARY DECEMBER 2013) 5.5 % more foreign tourists for the period January December 2013. BULGARIAN TOURISM IN FACTS AND FIGURES (JANUARY DECEMBER 2013) 5.5 % more foreign tourists for the period January December 2013. 6.3 % more foreign tourists for leisure and recreation for the year 2013.

More information

The Data of Macroeconomics. Measuring a Nation s Income. Measuring a Nation s Income

The Data of Macroeconomics. Measuring a Nation s Income. Measuring a Nation s Income Measuring a Nation s Income 10 The Data of Macroeconomics The rest of the quarter: Macroeconomics. Looking at GDP, inflation, unemployment Chapter 10: Measuring a Nation s Income Principle 8: A Country

More information

World Textile and Apparel Trade and Production Trends: The EU, 2015

World Textile and Apparel Trade and Production Trends: The EU, 2015 Brochure More information from http://www.researchandmarkets.com/reports/3254268/ World Textile and Apparel Trade and Production Trends: The EU, 2015 Description: This 2015 edition of our flagship series

More information

December 2014 compared with November 2014 Industrial production stable in euro area Up by 0.1% in EU28

December 2014 compared with November 2014 Industrial production stable in euro area Up by 0.1% in EU28 12-2005 03-2006 06-2006 09-2006 12-2006 03-2007 06-2007 09-2007 12-2007 03-2008 06-2008 09-2008 12-2008 03-2009 06-2009 09-2009 12-2009 03-2010 06-2010 09-2010 12-2010 03-2011 06-2011 09-2011 12-2011 03-2012

More information

Baden-Württemberg and the European Union

Baden-Württemberg and the European Union 2016 and the European Union Fra and the European Union The 2016er edition of the flyer and the European Union shows again: is one of the strongest regions in Europe. In a European comparison is included

More information

Taxation trends in the European Union EU27 tax ratio fell to 39.3% of GDP in 2008 Steady decline in top corporate income tax rate since 2000

Taxation trends in the European Union EU27 tax ratio fell to 39.3% of GDP in 2008 Steady decline in top corporate income tax rate since 2000 DG TAXUD 95/2010-28 June 2010 Taxation trends in the European Union EU27 tax ratio fell to 39.3% of GDP in 2008 Steady decline in top corporate income tax rate since 2000 The overall tax-to-gdp ratio 1

More information

Third quarter of 2014 Annual growth in labour costs down to 1.3% in euro area Stable at 1.4% in EU28

Third quarter of 2014 Annual growth in labour costs down to 1.3% in euro area Stable at 1.4% in EU28 198/2014-17 December 2014 Third quarter of 2014 Annual growth in labour costs down to 1.3% in euro area Stable at 1.4% in EU28 Hourly labour costs 1 rose by 1.3% in the euro area 2 (EA18) and by 1.4% in

More information

Energy production and consumption in 2013 Energy consumption in the EU down to its early 1990s level EU energy dependence at 53%

Energy production and consumption in 2013 Energy consumption in the EU down to its early 1990s level EU energy dependence at 53% 25/2015-9 February 2015 Energy production and consumption in 2013 Energy consumption in the EU down to its early 1990s level EU energy dependence at 53% In 2013, gross inland energy consumption 1, which

More information

Actual annual working time in France and in Europe in 2013

Actual annual working time in France and in Europe in 2013 Actual annual working time in France and in Europe in 2013 Update to the January 2012 study plus new data Summary of the Working Paper N.49 : La durée effective du travail en France et en Europe (June

More information

dr Grzegorz Kula, Erasmus+ 2016/2017 Information about exchange

dr Grzegorz Kula, Erasmus+ 2016/2017 Information about exchange Erasmus+ 2016/2017 Information about exchange Who can go? All students (BA, MA, PhD) except from the first year students of BA studies, and the last year students of MA studies. Each student for 12 months

More information

Socio-economic indicators of Portuguese-speaking Countries

Socio-economic indicators of Portuguese-speaking Countries Annual issue October 2016 Socio-economic indicators of Portuguese-speaking Countries Community in charts Land area Thousand km 2 Population Millions, GDP R, billions, current prices, 5,500 2,624 4,496

More information

The Current State of Cross-border E-commerce in Europe The first preliminary results

The Current State of Cross-border E-commerce in Europe The first preliminary results The Current State of Cross-border E-commerce in Europe The first preliminary results Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA 1 22 Source: Blendle Global cross-border B2C e-commerce

More information

COMMUNICATION FROM THE COMMISSION

COMMUNICATION FROM THE COMMISSION EUROPEAN COMMISSION Brussels, 17.9.2014 C(2014) 6767 final COMMUNICATION FROM THE COMMISSION Updating of data used to calculate lump sum and penalty payments to be proposed by the Commission to the Court

More information

The Banking Sector in Turkey 2009 December 2014

The Banking Sector in Turkey 2009 December 2014 The Banking Sector in Turkey 2009 December 2014 This study was prepared using data provided by the Central Bank of the Republic of Turkey (CBRT), Banking Regulation and Supervision Agency (BRSA), Turkish

More information

Tax Surveys A European Comparison

Tax Surveys A European Comparison Tax Surveys A European Comparison 2014 Doing Business in Luxembourg 1. Self Employed 2. Partnership: S.C. Unlimited Liability, No minimum capital, No Notary, S.E.C.S. Limited liability for non-active partners

More information

4 Distribution of Income, Earnings and Wealth

4 Distribution of Income, Earnings and Wealth 4 Distribution of Income, Earnings and Wealth Indicator 4.1 Indicator 4.2a Indicator 4.2b Indicator 4.3a Indicator 4.3b Indicator 4.4 Indicator 4.5a Indicator 4.5b Indicator 4.6 Indicator 4.7 Income per

More information

Projected Population of Scotland (2008-based) Figures

Projected Population of Scotland (2008-based) Figures Projected Population of Scotland (2008-based) Figures Contents Figure 1 Estimated population of Scotland, actual and projected, 1951-2083 Figure 2 Births and deaths, actual and projected, Scotland, 1951-2033

More information

Quarterly Spanish National Accounts. Base 2010

Quarterly Spanish National Accounts. Base 2010 26 November 2015 Quarterly Spanish National Accounts. Base 2010 Third quarter of 2015 Quarterly National Accounts (GDP) Latest data Year-on-year growth rate Quarter-on-quarter growth rate Third quarter

More information

193/2014-15 December 2014. Hourly labour costs in the EU28 Member States, 2012 (in )

193/2014-15 December 2014. Hourly labour costs in the EU28 Member States, 2012 (in ) 193/2014-15 December 2014 Labour Cost Survey 2012 in the EU28 Labour costs highest in the financial and insurance sector Three times higher than in the accommodation and food sector In 2012, average hourly

More information

Central, East and Southeast Europe

Central, East and Southeast Europe Handbook of Statistics 2015 Central, East and Southeast Europe Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kazakhstan, Kosovo, Latvia, Lithuania, Macedonia, Montenegro,

More information

CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH

CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH Learning Goals for this Chapter: To know what we mean by GDP and to use the circular flow model to explain why GDP equals aggregate expenditure and aggregate

More information

FEDERATION EUROPEENNE DES MEDECINS SALARIES EUROPEAN FEDERATION OF SALARIED DOCTORS

FEDERATION EUROPEENNE DES MEDECINS SALARIES EUROPEAN FEDERATION OF SALARIED DOCTORS FEDERATION EUROPEENNE DES MEDECINS SALARIES EUROPEAN FEDERATION OF SALARIED DOCTORS Registered Office/Siège Social : 39, rue Victor Massé F-75009 Paris/France http://www.fems.net Presidency: Dr. Claude

More information

Regional Forest Information Week. Elisa Asmelash. 33rd Joint FAO/UNECE Working Party on Forest Economics and Statistics

Regional Forest Information Week. Elisa Asmelash. 33rd Joint FAO/UNECE Working Party on Forest Economics and Statistics Regional Forest Information Week 33rd Joint FAO/UNECE Working Party on Forest Economics and Statistics Palais des Nations, Geneva, 23 24 March 2011 Elisa Asmelash Overview The scope of this study is to

More information

Database Grundtvig courses. January 2011 December 2012

Database Grundtvig courses. January 2011 December 2012 Database Grundtvig courses January 2011 December 2012 1. Totals courses Courses aimed at participants receiving: 10 1057 A grant for either Comenius or Grundtvig target groups (COM+GRU) 28% 299 A Grundtvig

More information

Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2013: A Further Decline

Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2013: A Further Decline April 5, 2013 ShadEcEurope31_Jan2013.doc Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2013: A Further Decline by Friedrich Schneider *) In the Tables

More information

Tax Surveys A European Comparison

Tax Surveys A European Comparison Tax Surveys A European Comparison 2014 A European Comparison of the following taxes for 2014 was undertaken Agenda 1. The Countries Involved 2. Salary Taxes, Social Security & Expat Tax 3. Self Employed

More information

International Comparative Assessments. Douglas Thompson Minsk, 28 th May /06/2015 1

International Comparative Assessments. Douglas Thompson Minsk, 28 th May /06/2015 1 Douglas Thompson Minsk, 28 th May 2015 douglasthompson@spi.pt International Comparative Assessments 1 05/06/2015 1 Key Learning Points This session will focus on: Description of the Innovation Union Scoreboard

More information

European Commission Project on Effective Tax Rates

European Commission Project on Effective Tax Rates European Commission European Commission Project on Effective Tax Rates MENA-OECD WG3 meeting January 2009 Jean-Pierre De Laet The need for ETRs ECOFIN Council (1998): Commission mandate for a Comprehensive

More information

Global financial assets of private households

Global financial assets of private households Economic Research Global financial assets of private households Munich, September 216 Weakest growth in financial assets since 211 Financial assets and liabilities of private households worldwide in EUR

More information

IB Economics The Level of Overall Economic Activity 2.3: Calculating GDP HL Activity

IB Economics The Level of Overall Economic Activity 2.3: Calculating GDP HL Activity IB Economics: www.ibdeconomics.com 2.3 CALCULATING GDP HL: STUDENT LEARNING ACTIVITY Answer the questions that follow. 1. DEFINITIONS Define the following terms: Factor incomes Factors of production Final

More information

Comparison of the price level among European countries (Based on purchasing power parity calculations referring to year 2010)

Comparison of the price level among European countries (Based on purchasing power parity calculations referring to year 2010) Comparison of the price level among European countries (Based on purchasing power parity calculations referring to year 2010) Hungarian Central Statistical Office November 2011 Contents Introduction...

More information

MEASURING NATIONAL INCOME. Instructor: Ghislain Nono Gueye

MEASURING NATIONAL INCOME. Instructor: Ghislain Nono Gueye MEASURING NATIONAL INCOME Instructor: Ghislain Nono Gueye 1 Microeconomics vs Macroeconomics Microeconomics is concerned with the study of individual households, firms and markets. Macroeconomics, on the

More information

Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2012: Some New Facts

Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2012: Some New Facts ShadEcEurope31_december2011.doc Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2012: Some New Facts by Friedrich Schneider *) In the Tables 1.1 to 1.4

More information

HUNGARY. Table 1. FDI flows in the host economy, by geographical origin. (Millions of US dollars)

HUNGARY. Table 1. FDI flows in the host economy, by geographical origin. (Millions of US dollars) Table 1. FDI flows in the host economy, by geographical origin World 3 936 2 994 2 137 4 266 7 709 6 818 3 951 6 325 1 995 2 202 5 842 13 769 Developed economies 3 464 2 392 2 550 3 219 8 084 6 586 3 117

More information

The Tax Burden of Typical Workers in the EU 28 2016

The Tax Burden of Typical Workers in the EU 28 2016 The Tax Burden of Typical Workers in the EU 28 2016 James Rogers Cécile Philippe Institut Économique Molinari, Paris Bruxelles TABLE OF CONTENTS Abstract 2 Background 2 Main Results 3 On average, a respite

More information

slow growth Volume growth continues, but slows in third quarter Nielsen European Growth Reporter

slow growth Volume growth continues, but slows in third quarter Nielsen European Growth Reporter Consumer Insight Delivering consumer clarity November 2009 www.nielsen.com slow growth Volume growth continues, but slows in third quarter Nielsen European Growth Reporter By: Jean-Jacques Vandenheede,

More information

International Statistical Release

International Statistical Release International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org). Worldwide Investment Fund Assets and Flows Trends in the

More information

MACROECONOMIC VARIABLES Measurement and definition. CHAPTER 2 The Data of Macroeconomics

MACROECONOMIC VARIABLES Measurement and definition. CHAPTER 2 The Data of Macroeconomics MACROECONOMIC VARIABLES Measurement and definition. 0 What this course is about: 1 2 WHAT IS THIS VARIABLES (GDP): part I WHAT DETERMINES THE BLUE LINE: part II WHAT DETERMINES THE RED LINE: part III HOW

More information

The Tax Burden of Typical Workers in the EU 28 2015

The Tax Burden of Typical Workers in the EU 28 2015 The Tax Burden of Typical Workers in the EU 28 2015 James Rogers Cécile Philippe Institut Économique Molinari, Paris Bruxelles TABLE OF CONTENTS Abstract 2 Background 2 Main Results 3 On average, a respite

More information

ANALYSIS OF CORRELATION BETWEEN TAX REVENUES AND OTHER ECONOMIC INDICATORS IN EUROPEAN UNION MEMBER STATES

ANALYSIS OF CORRELATION BETWEEN TAX REVENUES AND OTHER ECONOMIC INDICATORS IN EUROPEAN UNION MEMBER STATES ANALYSIS OF CORRELATION BETWEEN TAX REVENUES AND OTHER ECONOMIC INDICATORS IN EUROPEAN UNION MEMBER STATES BUNESCU Liliana Lucian Blaga University of Sibiu, Romania COMANICIU Carmen Lucian Blaga University

More information

MEASURING A NATION S INCOME

MEASURING A NATION S INCOME 10 MEASURING A NATION S INCOME WHAT S NEW IN THE FIFTH EDITION: There is more clarification on the GDP deflator. The Case Study on Who Wins at the Olympics? is now an FYI box. LEARNING OBJECTIVES: By the

More information

Lecture 1: Intermediate macroeconomics, spring 2016

Lecture 1: Intermediate macroeconomics, spring 2016 Lecture 1: Intermediate macroeconomics, spring 2016 Lars Calmfors Literature: Mankiw, chapters 3 and 6. 1 Topics 1. The relationship between saving, investment and the interest rate in a closed economy

More information

Lecture 21: European Debt Crisis

Lecture 21: European Debt Crisis Lecture 21: European Debt Crisis December 6, 2016 Prof. Wyatt Brooks Summary of European Debt Crisis Why was the Euro created? What was the immediate effect of Greece on joining the Euro? What happened

More information

DECISION ON THE FINANCIAL ARRANGEMENTS FOR TRANSFER OF A PROPORTION OF FEES TO THE MEMBER STATES

DECISION ON THE FINANCIAL ARRANGEMENTS FOR TRANSFER OF A PROPORTION OF FEES TO THE MEMBER STATES Doc: MB/65/2010/D final 1 DECISION ON THE FINANCIAL ARRANGEMENTS FOR TRANSFER OF A PROPORTION OF FEES TO THE MEMBER STATES (Document adopted by the Management Board) Consolidated version of 21 December

More information

2 The Data of Macroeconomics

2 The Data of Macroeconomics 2 The Data of Macroeconomics 1 Why do we need data? Observations of real world Theories to explain real world - based on data Theories are tested against new data Level of detail and simplifications in

More information

Business profit share and investment rate higher in the EU than in the USA

Business profit share and investment rate higher in the EU than in the USA Economy and finance Authors: Denis LEYTHIENNE, Tatjana SMOKOVA Statistics in focus 28/2009 Business profit share and investment rate higher in the EU than in the USA Profits and investment of non-financial

More information

LABOUR PRODUCTIVITY INDICATORS

LABOUR PRODUCTIVITY INDICATORS Rebecca FREEMAN July 2008 OECD Statistics Directorate Division of Structural Economic Statistics LABOUR PRODUCTIVITY INDICATORS COMPARISON OF TWO OECD DATABASES PRODUCTIVITY DIFFERENTIALS & THE BALASSA-SAMUELSON

More information

NEW COMMERCIAL VEHICLE REGISTRATIONS EUROPEAN UNION 1. December 2015

NEW COMMERCIAL VEHICLE REGISTRATIONS EUROPEAN UNION 1. December 2015 PRESS EMBARGO: NEW COMMERCIAL VEHICLE REGISTRATIONS EUROPEAN UNION 1 December 2015 Next press release: Wednesday 24 February 2016 1 Data for Malta unavailable Page 1 of 7 Commercial vehicle registrations:

More information

Introduction to Public Finance

Introduction to Public Finance Introduction to Public Finance Lecture 4: Do we need a big government? Functions of the government, governments expenditure trends in long run, international comparisons of expenditure trends. 1 Outline

More information

Employment by Economic Activity

Employment by Economic Activity Employment by Economic Activity Short Term Indicators of the Labour Market Employment Trends through 2nd Quarter 2013 Department of Statistics Contents Methodological Note 2 Summary of Employment Trends

More information

Chapter 8. GDP : Measuring Total Production and Income

Chapter 8. GDP : Measuring Total Production and Income Chapter 8. GDP : Measuring Total Production and Income Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics Related Economic Terms Macroeconomics:

More information

Situation of State Aid Granted at the European Union Level, from the Perspective of the Scoreboard 2014

Situation of State Aid Granted at the European Union Level, from the Perspective of the Scoreboard 2014 COMPETITION COUNCIL STATE AID DIRECTORATE No. 66 / 2015, January, 22 Situation of State Aid Granted at the European Union Level, from the Perspective of the Scoreboard 2014 At the end of 2014, the European

More information

December 2012 compared with November 2012 Industrial production up by 0.7% in euro area Up by 0.5% in EU27

December 2012 compared with November 2012 Industrial production up by 0.7% in euro area Up by 0.5% in EU27 22/2013-13 February 2013 December 2012 compared with November 2012 Industrial production up by 0.7% in euro area Up by 0.5% in EU27 In December 2012 compared with November 2012, seasonally adjusted industrial

More information

The contribution of aluminium packaging to the European Circular Economy Maarten G. Labberton

The contribution of aluminium packaging to the European Circular Economy Maarten G. Labberton The contribution of aluminium packaging to the European Circular Economy Maarten G. Labberton Director Packaging Group / European Aluminium Aluminium packaging intrinsic properties Aluminium is an absolute

More information

NEW PASSENGER CAR REGISTRATIONS BY ALTERNATIVE FUEL TYPE IN THE EUROPEAN UNION 1 Quarter 4 2015

NEW PASSENGER CAR REGISTRATIONS BY ALTERNATIVE FUEL TYPE IN THE EUROPEAN UNION 1 Quarter 4 2015 NEW PASSENGER CAR REGISTRATIONS BY ALTERNATIVE FUEL TYPE IN THE Quarter 4 2015 Alternative fuel vehicle (AFV) registrations: +20.0% in 2015; +21.1% in Q4 In the fourth quarter of 2015, total alternative

More information

Compendium of UK Statistics

Compendium of UK Statistics Compendium of UK Statistics Joe Grice, Chief Economic Adviser, ONS Roma Chappell, Deputy Director, Analysis and Data Access, ONS Purpose To pull together, in one place, independent statistics, ti ti that

More information

HOUSEHOLD SECTOR REPORT 2016 Q3

HOUSEHOLD SECTOR REPORT 2016 Q3 HOUSEHOLD SECTOR REPORT 1 Q Production date: February 7, 17 QUARTERLY REPORT OF FINANCIAL AND NON-FINANCIAL ACCOUNTS FOR THE HOUSEHOLD SECTOR IN THE EURO AREA This page is empty Contents INTRODUCTION 1

More information

Labour Force Survey 2014 Almost 10 million part-time workers in the EU would have preferred to work more Two-thirds were women

Labour Force Survey 2014 Almost 10 million part-time workers in the EU would have preferred to work more Two-thirds were women 75/2015-27 April 2015 Labour Force Survey 2014 Almost 10 million part-time workers in the EU would have preferred to work more Two-thirds were women Among the 44.1 million persons in the European Union

More information

Comparative Analysis of Business Demography Statistics between Korea and Europe

Comparative Analysis of Business Demography Statistics between Korea and Europe http://kostat.go.kr Press Release Embargo & Release Date : 9:30 AM, February 27. 2014 Economic Statistics Planning Division Contact Division Economic Statistics Bureau STATISTICS KOREA Contact Person Moon,

More information

RAPEX FACTS AND FIGURES 2013 COMPLETE STATISTICS

RAPEX FACTS AND FIGURES 2013 COMPLETE STATISTICS RAPEX FACTS AND FIGURES 2013 COMPLETE STATISTICS TABLE OF CONTENTS Glossary... 3 Notifications and Follow-up actions (Reactions) in RAPEX... 4 Figure 1 Overall RAPEX alerts per country... 4 Notifications

More information

Letter prices in Europe. Up-to-date international letter price survey. April th edition

Letter prices in Europe. Up-to-date international letter price survey. April th edition Letter prices in Europe Up-to-date international letter price survey April 2015 14th edition 1 Summary This is the fourteenth time Deutsche Post has carried out a study, drawing a comparison between letter

More information

February 2012 compared with January 2012 Volume of retail trade down by 0.1% in euro area Down by 0.4% in EU27

February 2012 compared with January 2012 Volume of retail trade down by 0.1% in euro area Down by 0.4% in EU27 54/2012-4 April 2012 February 2012 compared with January 2012 Volume of retail trade down by 0.1% in euro area Down by 0.4% in EU27 In February 2012 compared with January 2012, the volume of retail trade

More information

Current Affairs. European Union (EU) The CSS Point

Current Affairs. European Union (EU) The CSS Point Current Affairs European Union (EU) The CSS Point www.css.theazkp.com www.facebook.com/thecsspoint Introduction European Union is an organization of 25 countries of Europe. EU came into operation in 1993

More information

Euro How Big a Difference: Finland and Sweden in Search of Macro Stability *

Euro How Big a Difference: Finland and Sweden in Search of Macro Stability * Euro How Big a Difference: Finland and Sweden in Search of Macro Stability * Euroframe Warsaw 24 May 2013 Vesa Vihriälä * Based on ETLA Report 7/2013 by Paavo Suni and Vesa Vihriälä ELINKEINOELÄMÄN TUTKIMUSLAITOS

More information

INTRODUCTION. Chapter 2. The Data of Macroeconomics. September 11, Chapter 2: The Data of Macroeconomics. ECON204. Fall 2012

INTRODUCTION. Chapter 2. The Data of Macroeconomics. September 11, Chapter 2: The Data of Macroeconomics. ECON204. Fall 2012 INTRODUCTION Chapter 2 The Data of Macroeconomics September 11, 2012 1 THERE ARE THREE KEY AGGREGATES 1. Measures of economic activity or income: GDP and GNP 2. Price level 3. Unemployment 2 1. MEASURES

More information

Big Concepts. Measuring U.S. GDP. The Expenditure Approach. Economics 202 Principles Of Macroeconomics

Big Concepts. Measuring U.S. GDP. The Expenditure Approach. Economics 202 Principles Of Macroeconomics Lecture 6 Economics 202 Principles Of Macroeconomics Measuring GDP Professor Yamin Ahmad Real GDP and the Price Level Economic Growth and Welfare Big Concepts Ways to Measure GDP Expenditure Approach Income

More information

STATISTICAL ANNEX NOTE ON QUARTERLY PROJECTIONS

STATISTICAL ANNEX NOTE ON QUARTERLY PROJECTIONS OECD Economic Outlook, Volume 2016 Issue 2 OECD 2016 STATISTICAL ANNEX This annex contains data on key economic series which provide a background to the recent economic developments in the OECD area described

More information

This is the on-line Multiple Choice Quiz for Chapter 4. Please do the following. Go to the special codes section on your score sheet

This is the on-line Multiple Choice Quiz for Chapter 4. Please do the following. Go to the special codes section on your score sheet Instructions: This is the on-line Multiple Choice Quiz for Chapter 4. Please do the following. Step I - Go to the special codes section on your score sheet Write your section number (1, or 4, or 5) under

More information

Socio-economic indicators of Portuguese-speaking countries 2013

Socio-economic indicators of Portuguese-speaking countries 2013 Socio-economic indicators of Portuguese-speaking countries 2013 #Lusofonia aims to raise public awareness about the economies of the Portuguese-speaking countries and the economic bloc they constitute

More information

TRIPS OF BULGARIAN RESIDENTS ABROAD AND ARRIVALS OF VISITORS FROM ABROAD TO BULGARIA IN OCTOBER 2016

TRIPS OF BULGARIAN RESIDENTS ABROAD AND ARRIVALS OF VISITORS FROM ABROAD TO BULGARIA IN OCTOBER 2016 TRIPS OF BULGARIAN RESIDENTS ABROAD AND ARRIVALS OF VISITORS FROM ABROAD TO BULGARIA IN OCTOBER 2016 In October 2016, the number of the trips of Bulgarian residents abroad was 404.0 thousand (Annex, Table

More information

170/ November 2010

170/ November 2010 170/2010-15 November 2010 Provision of deficit and debt data for 2009 - Second notification Euro area and EU27 government deficit at 6.3% and 6.8% of GDP respectively Government debt at 79.2% and 74.0%

More information

GDP and National Accounts

GDP and National Accounts GDP and National Accounts National accounts show technically no recession yeeah! 1 of 18 Accounting (I) Some Accounting Definitions A stock variable is measured at one specific time, and represents a quantity

More information

Overview of the European VAT and reasons for the 2015 changes

Overview of the European VAT and reasons for the 2015 changes Overview of the European VAT and reasons for the 2015 changes Santa Monica, 16 September 2014 Claudio Fischer claudio.fischer@ch.ey.com Contents A kind of introduction What VAT is and how it works Comparison

More information

Chapter 24. What will you learn in this chapter? Valuing an economy. Measuring the Wealth of Nations

Chapter 24. What will you learn in this chapter? Valuing an economy. Measuring the Wealth of Nations Chapter 24 Measuring the Wealth of Nations 2014 by McGraw-Hill Education 1 What will you learn in this chapter? How to calculate gross domestic product (GDP). Why each component of GDP is important. What

More information

EUF STATISTICS. 31 December 2013

EUF STATISTICS. 31 December 2013 . ESTIMATES OF EU TURNOVER VOLUMES. Turnover volumes by product, allocation and notification (Estimates of EU s, Millions of ) Estimate of the EU % on Turnover Significance of the sample on total turnover

More information

7. Which of the following is a flow variable? A) wealth B) the number unemployed C) government debt D) income

7. Which of the following is a flow variable? A) wealth B) the number unemployed C) government debt D) income Name: Date: 1. GDP is all of the following except the total: A) expenditure of everyone in the economy. B) income of everyone in the economy. C) expenditure on the economy's output of goods and services.

More information

GDP M A C R O E C O N O M I C S

GDP M A C R O E C O N O M I C S GDP M A C R O E C O N O M I C S Gross Domestic Product GDP The market value of all final goods and services produced within a country during a given period of time. Breaking down the definition: 1. Market

More information

168/2014-4 November 2014. At risk of poverty or social exclusion 2 rate in the EU28, 2008-2013 (% of total population)

168/2014-4 November 2014. At risk of poverty or social exclusion 2 rate in the EU28, 2008-2013 (% of total population) 168/2014-4 November 2014 At risk of poverty or social exclusion in the EU28 More than 120 million persons at risk of poverty or social exclusion in 2013 Almost 1 out of every 4 persons in the EU in this

More information