A broader concept that captures the aspects not covered by the gross domestic product is the concept of economic development, which also includes aspects such as production level, structural aspects such as education of the population, indicators of mortality, life expectancy, etc. The concept of development also include more abstract notions such as political freedom, social security, etc..
Why not use the concept of economic development or other welfare measures instead of the concept of gross
domestic product to measure economic growth? Basically, the difficulty of measuring economic development. Economic development is a broad concept and there is no general consensus on its exact definition. On the other hand, it is very difficult to move the observation of economic development to a numerical measure of it, interregional and intertemporal comparisons are difficult. The gross domestic product is a numerical measure of easy interpretation, moreover, "fits" well in the economic models, where usually the product of an economy is the result of the combination of productive inputs (capital and labor) using a given technology.
domestic product to measure economic growth? Basically, the difficulty of measuring economic development. Economic development is a broad concept and there is no general consensus on its exact definition. On the other hand, it is very difficult to move the observation of economic development to a numerical measure of it, interregional and intertemporal comparisons are difficult. The gross domestic product is a numerical measure of easy interpretation, moreover, "fits" well in the economic models, where usually the product of an economy is the result of the combination of productive inputs (capital and labor) using a given technology.
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