Sunday, June 29, 2003
Calculating GDP
I have posed this questions to lots of people -- how much of income is under-reported in developing countries? Consequently, how much of the official GDP numbers are understated? Or does the government take into account this under-reporting and inflate the official numbers accordingly? What would the under-reporting be like? 20%? 25%? Where does the black/grey market fit? How about hoarded gold? Maybe I should pose this question to a macro-economist who works on this sort of thing rather than blog it.
