GDP vs EVA as an Economic Indicator

Nicolas Cachanosky

MPRA Paper from University Library of Munich, Germany

Abstract: This article discusses the limits and charactristics of GDP as economic indicator and suggests that an Economic Value Added (EVA®) approach would be more accurate and appropriate to measure macroeconomic performance. The main difference is that EVA® takes into consideration the invested capital cost of opportunity, while GDP is focused on quantity of production; an EVA® approach will be focused on the economic result of production activities. A final comment is made on the characteristics and limits of a GDP calculated using the EVA®

Keywords: GDP; Growth; Economic Value Added; EVA (search for similar items in EconPapers)
JEL-codes: E01 E30 (search for similar items in EconPapers)
Date: 2009-03-06
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15262

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