March 10, 2020Asad
Zaman
from Asad
Zaman
This is the 8th post, which considers comparisons of GDP across time
within a single country.
In comparisons across
countries, we face the difficulty that the concept of “wealth” has
varied across societies, and changed with time. The “average basket” of
goods varies for each country, because different societies have
different preferences and values. We cannot compare apples and oranges.
It seems that these problems would be reduced if we considered a single
society across time. The concept of wealth, and the average bundle of
goods would remain relatively stable, at least across short periods of
time. We will now discuss difficulties which arise when we consider
growth across time, comparing GDP across the years for a single
country. read
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