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Aggregate Measures of Income and Output in Canada and the United States: Implications for Productivity and Living Standards

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  • Chris Ross
  • Alexander Murray

Abstract

The objectives of this article are to clarify definitions and to produce estimates of the eight aggregate measures of income and product (gross domestic product, gross domestic income, gross national product, gross national income, net domestic product, net domestic income, net national product and net national income) for Canada and the United States over the 1980-2008 period. The article also discusses the implications of the eight measures for productivity and living standards analysis. It concludes that GDP and NDP are the most appropriate measures of output for productivity analysis, while NNI is the most appropriate measure of income for the analysis of living standards because it captures the impact on real income of terms of trade changes, net income received from abroad, and the sustainability of the capital stock.

Suggested Citation

  • Chris Ross & Alexander Murray, 2010. "Aggregate Measures of Income and Output in Canada and the United States: Implications for Productivity and Living Standards," International Productivity Monitor, Centre for the Study of Living Standards, vol. 19, pages 20-39, Spring.
    • Handle: RePEc:sls:ipmsls:v:19:y:2010:2
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    File URL: http://www.csls.ca/ipm/19/IPM-19-ross-murray.pdf
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    References listed on IDEAS

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    1. Hulten, Charles R, 1992. " Accounting for the Wealth of Nations: The Net versus Gross Output Controversy and Its Ramifications," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 9-24, Supplemen.
    2. Andrew Sharpe & Jean-Francois Arsenault, 2009. "New Estimates of Multifactor Productivity Growth for the Canadian Provinces," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 25-37, Spring.
    3. Roland Spant, 2003. "Why Net Domestic Product Should Replace Gross Domestic Product as a Measure of Economic Growth," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 39-43, Fall.
    4. Ulrich Kohli, 2006. "Real GDP, Real GDI and Trading Gains: Canada, 1981-2005," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 46-56, Fall.
    5. Macdonald, Ryan, 2007. "Real GDP and the Purchasing Power of Provincial Output," Economic Analysis (EA) Research Paper Series 2007046e, Statistics Canada, Analytical Studies Branch.
    6. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
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    Citations

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    Cited by:

    1. James Ashwell, 2021. "A Strengthening Position at the Bargaining Table? Understanding the Productivity-Median Wage Gap in Canada, 1976-2019," CSLS Research Reports 2021-09, Centre for the Study of Living Standards.
    2. Evguenia Tsiroulnitchenko & Elspeth Hazell, 2011. "Economic Activity of the On-Reserve Aboriginal Identity Population in Canada: Gross Domestic Product Estimates for Indian Reserves, 2000 and 2005," CSLS Research Reports 2011-08, Centre for the Study of Living Standards.
    3. David M. Williams, 2021. "Pay and Productivity in Canada: Growing Together, Only Slower than Ever," International Productivity Monitor, Centre for the Study of Living Standards, vol. 40, pages 3-26, Spring.
    4. James Uguccioni, Andrew Sharpe and Richard Beard, 2017. "The Human Development Index In Canada: Ranking the Provinces and Territories Internationally, 2000-2015: An Update," CSLS Research Reports 2017-06, Centre for the Study of Living Standards.
    5. Elspeth Hazell & Kar-Fai Gee & Andrew Sharpe, 2012. "The Human Development Index in Canada: Estimates for the Canadian Provincesand Territories, 2000-2011," CSLS Research Reports 2012-02, Centre for the Study of Living Standards.
    6. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    7. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
    8. Andrew Sharpe & Alexander Murray & Benjamin Evans & Elspeth Hazell, 2011. "The Levy Institute Measure of Economic Well-Being: Estimates for Canada, 1999 and 2005," Economics Working Paper Archive wp_680, Levy Economics Institute.
    9. Andrew Sharpe & Alexander Murray & Benjamin Evans & Elspeth Hazell, 2011. "The Levy Institute Measure of Economic Well-Being: Estimates for Canada, 1999 and 2005," CSLS Research Reports 2011-09, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    gross domestic product; gross domestic income; gross national product; gross national income; net domestic product; net domestic income; net national product; net national income; productivity; living standards;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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