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Social Costs of the Economic Process and National Accounts: The Example of Defensive Expenditures

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  • Christian Leipert

    (Science Center for Social Research Berlin)

Abstract

The starting point of the paper is the finding that the Gross National Product (GNP) entails in growing proportions, economic activities that are not real benefits of the economic process, but in fact, incremental costs of production and consumption. The paper examines the empirical evidence for the thesis that the proportion of defensive or compensatory expenditures of the GNP, that only reduce, neutralize, repair the negative effects of the economic growth process, increases over time. The research results give evidence to this fact for the Federal Republic of Germany. The ratio of defensive expenditures in the GNP between 1970 and 1985 increased from 5% to at least 10%.

Suggested Citation

  • Christian Leipert, 1989. "Social Costs of the Economic Process and National Accounts: The Example of Defensive Expenditures," Journal of Interdisciplinary Economics, , vol. 3(1), pages 27-46, January.
    • Handle: RePEc:sae:jinter:v:3:y:1989:i:1:p:27-46
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    Cited by:

    1. Brennan, Andrew John, 2008. "Theoretical foundations of sustainable economic welfare indicators -- ISEW and political economy of the disembedded system," Ecological Economics, Elsevier, vol. 67(1), pages 1-19, August.
    2. Nils Droste & Bartosz Bartkowski, 2018. "Ecosystem Service Valuation for National Accounting: A Reply to Obst, Hein and Edens (2016)," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 205-215, September.
    3. Alberto Ansuategi & Simone Marsiglio, 2017. "Is Environmental Protection Beneficial for the Environment?," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 786-802, August.
    4. Rugani, Benedetto & Marvuglia, Antonino & Pulselli, Federico Maria, 2018. "Predicting Sustainable Economic Welfare – Analysis and perspectives for Luxembourg based on energy policy scenarios," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 288-303.

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