宏观经济学

1. 宏观经济学 徐现祥 2014－2－25

2. Outlines National accounts History Mechanism Index Criticism Ch 20

3. Simon Kuznets Richard Stone History of SNA A satellite in space History Dating back to William Petty(1623-1687) Simon Kuznets 1901-1985 Nobel prize winner, 1971 Richard Stone 1913-1991 Nobel prize winner, 1984 SNA in China

4. Mechanism of SNA The first macro model! Consider an simplified economy No government, no foreign trade, and no investment Circulate flow diagram Upper loop: products Lower loop: incomes They are the same!

5. Two measures of GDP Review the definition of GDP Circulate flow diagram shows two measures of GDP Product approach from upper loop Income approach from lower loop Income approach GDP is the sum of factor payments Compensation Property income Depreciation of capital (net) Product taxes / indirect taxes

6. Product approach Basic concepts Final product / intermediate goods / value added Doubling accounting if including intermediate goods GDP is the sum of value added at each stage Value-added approach

7. Components of GDP GDP = C +I+ G +X C: personal consumption expenditure I: investment / capital formation Investment is the production of durable capital goods. Gross investment = net investment + depreciation G: government purchase Consumption-type goods and investment-type items Excluding transfer payments X: net exports Net exports = exports – imports Why net exports?

8. Source: PWT version 8

9. Two measures of GDP

10. Beyond GDP GDP deflator = nominal GDP / real GDP NDP (net domestic product) = GDP – depreciation GNP (gross national product) In closed economy, GDP=GNP In open economy, they might be different. National income Disposable income

11. Identity Consider a simplified economy: no government, no international trade GDP ≡ C+I GDP ≡ C+S S ≡ I

12. Criticism Omitted nonmarket activities Omitted environmental damage

13. Concluding remark Circulate flow diagram Measures of GDP Assignment:1\3\4\5 Websites www.bea.gov www.stats.gov.cn/2013年国民经济和社会发展统计公报