GDP per capita
India has the 4th largest GDP in the world (in PPP terms i.e. Purchasing Power Parity). I didnt know that until very recently. The first three above us are the US, China and Japan. However, India ranks 135th in the GDP per capita (GDP divided by the population)!
I feel neither GDP nor GDP per capita are ideal measures of the status of an economy. Instead of dividing by the population, what if I weighed each unit of population by a number between 0 and 1 and used the convex sum of such weighed numbers to divide the GDP? Does that represent a more accurate meausre of a contries produce suitably offset by the distribution of wealth among its population?
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I feel neither GDP nor GDP per capita are ideal measures of the status of an economy. Instead of dividing by the population, what if I weighed each unit of population by a number between 0 and 1 and used the convex sum of such weighed numbers to divide the GDP? Does that represent a more accurate meausre of a contries produce suitably offset by the distribution of wealth among its population?
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1 Comments:
Your feeling is right. If 1 indicator could speak the economy of a country, there would have been a discipline called Macroeconomics.
GDP is just one empirical measure.
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