Difference between revisions of "Economic output"
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= Economic output = |
= Economic output = |
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| − | + | [[Economic impact]] of urban planning developments, security threats and security measures may be viewed in terms of '''economic output''' such as business output, wealth, total employment, etc. |
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| + | == Description == |
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| − | == The relevance of this subject == |
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| ⚫ | Literally, economic output can be defined as "the productivity of a country or region measured by the value of goods and services produced"<ref>Wiktionary.org http://en.wiktionary.org/wiki/economic_output</ref>. Economic output, though, can also be regarded as the 'measurable' part of the economic impact of an investment project or security threat, since the statistical and economic models used to measure the economic impact are based on simplified versions of the truth, and hence not perfectly capable to measure the complete economic impact<ref>A famous example is the problem of causality: did the investment lead to an increase in economic activities or the other way around?</ref>. |
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| + | == The relevance of economic output with regards to security == |
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The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output. Since these types of output are of essential value in the calculations and are not without limitations, it is relevant for the urban planner to gain insight in the different types of economic output used in order to be able to make well-balanced decisions when it comes to security threats, security measures and urban development projects in general. |
The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output. Since these types of output are of essential value in the calculations and are not without limitations, it is relevant for the urban planner to gain insight in the different types of economic output used in order to be able to make well-balanced decisions when it comes to security threats, security measures and urban development projects in general. |
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| − | ==Definition of economic output== |
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| ⚫ | Literally, economic output can be defined as "the productivity of a country or region measured by the value of goods and services produced"<ref>Wiktionary.org http://en.wiktionary.org/wiki/economic_output</ref>. Economic output, though, can also be regarded as the 'measurable' part of the economic impact of an investment project, since the statistical and economic models used to measure the economic impact are based on simplified versions of the truth, and hence not perfectly capable to measure the complete economic impact<ref>A famous example is the problem of causality: did the investment lead to an increase in economic activities or the other way around?</ref>. |
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== Types of economic output == |
== Types of economic output == |
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| + | '''Household income''' (or aggregate personal income) is a type of economic output of the combined incomes of all people sharing a particular household or place of residence. "It includes every form of income e.g., salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains"<ref>Wikipedia; http://en.wikipedia.org/wiki/Household_income. Income changes when pay levels change or the amount of people with jobs or businesses changes, which makes this measure a better suited economic measure than total employment. However, also the household income is still an underestimate of the true economic impact insofar an urban development project will also generate business profits that are not included in household income, in contrast to Gross Value Added.</ref>. |
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| − | '''Clickable map''' of different types of economic output: |
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| − | <imagemap> |
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| − | Image:Economic_output_3.png|600px |
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| − | circle 252 405 89 [[Public income|Public income]] |
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| − | circle 297 188 88 [[Public expenditure|Public expenditure]] |
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| − | circle 500 90 87 [[Household income|Household income]] |
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| − | circle 703 185 88 [[Wealth|Wealth]] |
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| − | circle 754 407 83 [[Business output|Business output]] |
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| − | circle 614 581 86 [[Gross value added|Gross value added]] |
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| − | circle 389 584 84 [[Total employment|Total employment]] |
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| − | circle 504 347 99 [[Economic output|Economic output]] |
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| − | desc bottom-left |
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| − | </imagemap> |
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==Limitations of economic output measures== |
==Limitations of economic output measures== |
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Revision as of 12:01, 11 October 2012
Contents
Economic output
Economic impact of urban planning developments, security threats and security measures may be viewed in terms of economic output such as business output, wealth, total employment, etc.
Description
Literally, economic output can be defined as "the productivity of a country or region measured by the value of goods and services produced"[1]. Economic output, though, can also be regarded as the 'measurable' part of the economic impact of an investment project or security threat, since the statistical and economic models used to measure the economic impact are based on simplified versions of the truth, and hence not perfectly capable to measure the complete economic impact[2].
The relevance of economic output with regards to security
The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output. Since these types of output are of essential value in the calculations and are not without limitations, it is relevant for the urban planner to gain insight in the different types of economic output used in order to be able to make well-balanced decisions when it comes to security threats, security measures and urban development projects in general.
Types of economic output
Household income (or aggregate personal income) is a type of economic output of the combined incomes of all people sharing a particular household or place of residence. "It includes every form of income e.g., salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains"[3].
Limitations of economic output measures
- The public income and expenditures are included as economic output, while they could be considered to be "˜financial output".
- The various measures of economic impact are overlapping[4]. An increase in business activity, for example, will generate income for its employees, profit for its owners and tax income for the public authorities. For this reason, the different measures cannot be added together to calculate the total economic impact.
- Social impact "includes the valuation of changes in amenity or quality of life factors (such as health, safety, recreation, air or noise quality)"[5]. Some economic tools (e.g., social cost-benefit analysis), however, still try to attempt to quantify and monetarize these social impacts, but there are limits to quantify for example quality of life. Therefore, economic output measures are by definition different from the broader social impact measures.
Related subjects
See clickable map:
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Footnotes and references
- ↑ Wiktionary.org http://en.wiktionary.org/wiki/economic_output
- ↑ A famous example is the problem of causality: did the investment lead to an increase in economic activities or the other way around?
- ↑ Wikipedia; http://en.wikipedia.org/wiki/Household_income. Income changes when pay levels change or the amount of people with jobs or businesses changes, which makes this measure a better suited economic measure than total employment. However, also the household income is still an underestimate of the true economic impact insofar an urban development project will also generate business profits that are not included in household income, in contrast to Gross Value Added.
- ↑ B. and G. Weisbrod (1997). Measuring economic impacts of projects and programs. Economic Development Research Group.
- ↑ Ibid.
MAP
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