GAUGING ECONOMIC PERFORMANCE UNDER CHANGING TERMS OF TRADE: REAL GROSS DOMESTIC INCOME OR REAL GROSS DOMESTIC PRODUCT?

William Coleman

doi:10.1111/j.1759-3441.2008.tb01047.x

GAUGING ECONOMIC PERFORMANCE UNDER CHANGING TERMS OF TRADE: REAL GROSS DOMESTIC INCOME OR REAL GROSS DOMESTIC PRODUCT?

William Coleman^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

6 Citations (Scopus)

Abstract

The paper presents a simple theoretical case for the superiority of the notion of Real Gross Domestic Income to Gross Domestic Product. It is shown that, in a multi-period version of the familiar neoclassical model of a small, open economy, a temporary improvement in its terms of trade will increase welfare and RGDI, and produce a trade surplus in current prices; but will decrease real GDP, on account of it creating a trade deficit at constant prices.

Original language	English
Pages (from-to)	329-342
Number of pages	14
Journal	Economic Papers
Volume	27
Issue number	4
DOIs	https://doi.org/10.1111/j.1759-3441.2008.tb01047.x
Publication status	Published - 1 Dec 2008

Access to Document

10.1111/j.1759-3441.2008.tb01047.x

Cite this

@article{16dfe596b65247ba82a304de1c1b6d99,

title = "GAUGING ECONOMIC PERFORMANCE UNDER CHANGING TERMS OF TRADE: REAL GROSS DOMESTIC INCOME OR REAL GROSS DOMESTIC PRODUCT?",

abstract = "The paper presents a simple theoretical case for the superiority of the notion of Real Gross Domestic Income to Gross Domestic Product. It is shown that, in a multi-period version of the familiar neoclassical model of a small, open economy, a temporary improvement in its terms of trade will increase welfare and RGDI, and produce a trade surplus in current prices; but will decrease real GDP, on account of it creating a trade deficit at constant prices.",

keywords = "National income",

author = "William Coleman",

note = "Publisher Copyright: 2008 The Economic Society of Australia",

year = "2008",

month = dec,

day = "1",

doi = "10.1111/j.1759-3441.2008.tb01047.x",

language = "English",

volume = "27",

pages = "329--342",

journal = "Economic Papers",

issn = "0812-0439",

publisher = "Wiley-Blackwell",

number = "4",

}

TY - JOUR

T1 - GAUGING ECONOMIC PERFORMANCE UNDER CHANGING TERMS OF TRADE

T2 - REAL GROSS DOMESTIC INCOME OR REAL GROSS DOMESTIC PRODUCT?

AU - Coleman, William

N1 - Publisher Copyright: 2008 The Economic Society of Australia

PY - 2008/12/1

Y1 - 2008/12/1

N2 - The paper presents a simple theoretical case for the superiority of the notion of Real Gross Domestic Income to Gross Domestic Product. It is shown that, in a multi-period version of the familiar neoclassical model of a small, open economy, a temporary improvement in its terms of trade will increase welfare and RGDI, and produce a trade surplus in current prices; but will decrease real GDP, on account of it creating a trade deficit at constant prices.

AB - The paper presents a simple theoretical case for the superiority of the notion of Real Gross Domestic Income to Gross Domestic Product. It is shown that, in a multi-period version of the familiar neoclassical model of a small, open economy, a temporary improvement in its terms of trade will increase welfare and RGDI, and produce a trade surplus in current prices; but will decrease real GDP, on account of it creating a trade deficit at constant prices.

KW - National income

UR - http://www.scopus.com/inward/record.url?scp=80052216216&partnerID=8YFLogxK

U2 - 10.1111/j.1759-3441.2008.tb01047.x

DO - 10.1111/j.1759-3441.2008.tb01047.x

M3 - Article

SN - 0812-0439

VL - 27

SP - 329

EP - 342

JO - Economic Papers

JF - Economic Papers

IS - 4

ER -

GAUGING ECONOMIC PERFORMANCE UNDER CHANGING TERMS OF TRADE: REAL GROSS DOMESTIC INCOME OR REAL GROSS DOMESTIC PRODUCT?

Abstract

Access to Document

Other files and links

Fingerprint

Cite this