Underestimating the Real Growth of GDP, Personal Income, and Productivity

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CFA Digest
October 2017 | Vol. 47 | No. 10
Source: CFA Institute
Martin Feldstein
Marvin Powell, CFA (Reviewer)

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Summary

The author focuses on the issues surrounding the measurement of real output and productivity. Users of current economic metrics continue to grapple with quality changes and accurately measuring the value of new goods and services. The author highlights the growing difficulty of measuring output in a service-oriented economy as well as the potential implications of this mismeasurement.

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