Indicators and measurement for performance Gene Chang

Material goods –GDP per capita Income distribution –Gini coefficient –number of people living under poverty line Health –Life expectancy at born Education attainment –Literacy, average school years Major indicators

Gross Domestic Product (GDP) is the money value of all the goods and services produced in a year. Gross National Product (GNP) GDP and GDP per capita

Gross National Income (GNI) GDP – Depreciation – Indirect Business Tax Growth and Growth Rate

GDP and GDP per capita GNP per capita = GNP / Population size GDP per capita = GDP / Population size Growth rate of GDP per capita = g.r. of GDP ‑ g.r. of pop size

GDP per capita IndiaChad Growth rate of GDP Growth rate of Pop g.r. of GDP per capita

GDP by countries

The U.S. Economy Largest in the World Gross Domestic Product (GDP) = $14.3 trillion dollars (2008) GDP per capita = $46,859

GDP by exchange rate (2008) (billion $)

International comparison Need a common currency unit to make comparison, commonly $ is used Convert local currency to the U.S. dollar But cost of living or the price level differ from country to country Law of one price

International Comparison A watermelon costs In the U.S.In Japan US$5.00Yen 1500 Exchange rate: US$1=Yen 100, by exchange rate, a watermelon costs In the U.S.In Japan US$5.00US$15

International comparison To take into account of the price level difference, we use Purchasing Power Parity (PPP) to convert local currency to the U.S. dollar PPP is an exchange rate corrected for the price difference. According to the law of one price, for watermelon, PPP implies $1 = Yen 300

Big Mac Index (2007) Big Mac pricesUnder (-)/over (+) local currencyin dollarsvaluation against the dollar, % United States$ ChinaYuan RussiaRouble SwitzerlandSFr BrazilReal

GDP 2008 by purchasing power parity (PPP) (billion $)

GDP Per Capita PPP$ (2008)

GDP Growth Rate (2007)

Other measures for the well-being Life expectancy = number of the years a resident expect to live Security (personal, social, community, national) Income distribution EnvironmentEducation

Life Expectancy (2009est) Source: CIA World Facebook 2009 estimates

Life Expectancy (2004)