30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator
Abstract The comparison of living conditions in East and West Germany is often based on the gross domestic product per inhabitant. However, this measure is not a good welfare indicator in itself. It can be assumed that, measured by the gross domestic product per inhabitant, there will be no further...
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Sciendo
2021-04-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-021-2830-8 |
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| author | Oliver Holtemöller |
| author_facet | Oliver Holtemöller |
| author_sort | Oliver Holtemöller |
| collection | DOAJ |
| description | Abstract The comparison of living conditions in East and West Germany is often based on the gross domestic product per inhabitant. However, this measure is not a good welfare indicator in itself. It can be assumed that, measured by the gross domestic product per inhabitant, there will be no further significant equalisation of economic power in East and West Germany in the foreseeable future. This is because the age structure of East Germany, i.e. the ratio of employed persons to inhabitants, is less favourable than in the West. On the other hand, if one looks at important welfare indicators such as consumption opportunities, life expectancy, leisure time and income inequality, living conditions in East and West Germany are more similar than the gross domestic product per inhabitant suggests. In the debates on the catching-up process of East Germany, more emphasis should therefore be placed on labour productivity as a measure of economic strength and on welfare indicators as a measure of the equalisation of living conditions. |
| format | Article |
| id | doaj-art-82cfdbcfd729474590585c5595a66871 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2021-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-82cfdbcfd729474590585c5595a668712025-02-02T02:15:35ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-04-01101S1374010.1007/s10273-021-2830-830 Years after Reunification, Gross Domestic Product has Served its Purpose as an IndicatorOliver Holtemöller0Abteilung Makroökonomik, Leibniz-Institut für Wirtschaftsforschung Halle (IWH)Abstract The comparison of living conditions in East and West Germany is often based on the gross domestic product per inhabitant. However, this measure is not a good welfare indicator in itself. It can be assumed that, measured by the gross domestic product per inhabitant, there will be no further significant equalisation of economic power in East and West Germany in the foreseeable future. This is because the age structure of East Germany, i.e. the ratio of employed persons to inhabitants, is less favourable than in the West. On the other hand, if one looks at important welfare indicators such as consumption opportunities, life expectancy, leisure time and income inequality, living conditions in East and West Germany are more similar than the gross domestic product per inhabitant suggests. In the debates on the catching-up process of East Germany, more emphasis should therefore be placed on labour productivity as a measure of economic strength and on welfare indicators as a measure of the equalisation of living conditions.https://doi.org/10.1007/s10273-021-2830-8 |
| spellingShingle | Oliver Holtemöller 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator Wirtschaftsdienst |
| title | 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator |
| title_full | 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator |
| title_fullStr | 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator |
| title_full_unstemmed | 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator |
| title_short | 30 Years after Reunification, Gross Domestic Product has Served its Purpose as an Indicator |
| title_sort | 30 years after reunification gross domestic product has served its purpose as an indicator |
| url | https://doi.org/10.1007/s10273-021-2830-8 |
| work_keys_str_mv | AT oliverholtemoller 30yearsafterreunificationgrossdomesticproducthasserveditspurposeasanindicator |