GDP

Purpose and Perspective

The GDP sector represents aggregate production, including a set of accounting relationships used to calculate national production and national income figures. The sector is built based on standard economic identities, and produces key macroeconomic indicators that are used in several other sectors. Individual sector deflators and the overall GDP deflator are exogenous to the model.

Major Assumptions

• Real GDP at factor cost is the sum of real sectors’ production [1]

• Real GDP at market prices also includes the value of indirect taxes minus subsidies [2]

• Gross national income is equal to nominal GDP at market prices plus net factor income [3]

Exogenous Input Variables

• Indirect taxes minus subsidies as share of GDP - Units: Dmnl

• GDP at Factor Cost deflator growth rate – Units: Dmnl/Year

• GDP at Market Price to GDP at Factor Cost deflator ratio – Units: Dmnl

• Relative deflator growth rate – Units: Dmnl/Year

Initialization Variables

• Initial GDP Factor Cost deflator – Units: Lcu/Rlcu

• Initial relative deflator – Units: Dmnl

• Initial GDP growth rate – Units: Dmnl/Year

Modeling Details

The model produces various checks of consistency of national production and income with major aggregates from other sectors (e.g. balance of payments).

Footnotes and References

[1] UNDESA (2003). Handbook of National Accounting. Studies in Methods Series F, 85. New York: United Nations Department of Economic and Social Affairs Statistics Division.

[2] UNDESA (2003). Handbook of National Accounting. Studies in Methods Series F, 85. New York: United Nations Department of Economic and Social Affairs Statistics Division.

[3] UNDESA (2003). Handbook of National Accounting. Studies in Methods Series F, 85. New York: United Nations Department of Economic and Social Affairs Statistics Division.