On Jul 31, 2013, at 1:12 PM, Jim Devine wrote:
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.
All that is already counted in nominal GDP. What they are doing is
adding it to *"real"* corporate GDP and GDI (adding the "R&D" expense
for designing the perfume bottle to the "value" paid for the junk
inside it).
Shane Mage
"Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64
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