Shane Mage <[email protected]> wrote: > Adding internal corporate "R&D" to capital formation means including > tax-deductible expense (not production) in GDP even though none of it is > sold through the market, and adding those expenses to the profits and > capital stock.
As I understand it, the costs of the labor-power hired to do R&D end up being counted as part of GDP: likely the market-value of the GDP resulting from R&D labor would be counted by adding up their wages & salaries, just as with the services provided by the government. Anyway, if the new measure of GDP leads to Okun's "Law" breaking down completely, then that's a sign that the measure is poor. -- Jim Devine / "Reality is that which, when you stop believing in it, doesn't go away." -- Philip K. Dick _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
