Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200206
Authors: 
Fix, Blair
Nitzan, Jonathan
Bichler, Shimshon
Year of Publication: 
2019
Citation: 
[Journal:] Real-World Economics Review [ISSN:] 1755-9472 [Issue:] 88 [Year:] 2019 [Pages:] 51-59
Abstract: 
The study of economic growth is central to macroeconomics. More than anything else, macroeconomists are concerned with finding policies that encourage growth. And by ‘growth’, they mean the growth of real GDP. This measure has become so central to macroeconomics that few economists question its validity. Our intention here is to do just that. We argue that real GDP is a deeply flawed metric. It is presented as an objective measure of economic scale. But when we look under the surface, we find crippling subjectivity. Moreover, few economists seem to realize that real GDP is based on a non-existent quantum – utility. In light of these problems, it seems to us that much of macroeconomics needs to be rethought.
Subjects: 
aggregation
national accounting
economic growth
neoclassical economics
quality change
utility
JEL: 
E13
M41
P16
E01
C43
O4
URL of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
Document Version: 
Published Version
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