Economic Development: GDP, Romans, and Manorialism

List 2 data sources researchers use to estimate historical standards of living and explain what they can infer from these sources. List three indicators of economic development other than National Income measures (NI, GDP, or GNP, level, growth rate, or per capita) that are of interest to economists and explain what can be inferred from each of these indicators. Explain in detail 3 weaknesses of per capita GNP (or GDP) as a measure of economic well-being. Although this measure has the flaws you just listed (and others) it is the most oft-referenced statistic when considering standard of living differences across countries. Why Does not capture all economically important activities Black market/ informal (barter) market-much larger in less developed countries. Agriculture production for own consumption. Housework (production in the home). Some economies have seen GDP grow relatively more just as production preciously done in the home, moves to the market (child care, cleaning services, more meals out) 2 Dollar value of a good does not always equal social value. Relevant for Industrialization standard of living debate. Keep in mind a crime wave or war increases G, but doesnt make society better off. On the other hand, spending on schools and other things with positive spillovers also understate welfare in GDP. 3. Does not account for differences in cost of living across time and space. Comparisons across space and time would be hindered by the fact that the cost of living that is, the cost of a certain bundle of goods or a certain lifestyle is not the same in different societies (prices housing prices in particular, taxes, etc.) Despite these caveats, GDP still most oft-referenced measure of countries welfare for two main reasons Widely available and easily comparable for many years for most countries. Even with all these flaws, it is highly and predictably correlated with any other measure. What has happened to global economic inequality since 1960