Der Reichtum und die Wohlfahrt von Nationen - Probleme ihrer Messung durch das BIP
In: List Forum Band 31
The GDP like other aggregates of income is commonly used to indicate the ablility to pay of a region and to measure the social welfare of a group of people. There exists a long series of critical doubts about the GDP as a trustworthy indicator of a region's welfare. This article summarizes the traditional criticism and extends the discussion with new arguments. Many applications of the GDP trace back to the need to specify intergovernmental grants which are paid by a lower government (such as own resources of the EU budget) or to substantiate payments which accrue to a lower government's budget (such as "Objective 1" subsidies in the EU). It is argued that the GDP doesn't provide an appropriate measure to calculate such levies or grants insuring that the criteria of the ability-to-pay principle are fullfilled.(Original text only available in german language)
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