International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Determining National Income, an Endless Journey Started 400 Years Ago
Manuela Ciani Scarnicci

Nowadays, the Gross Domestic Product "GDP" is one of the most relevant indicators of economic growth. Because of its importance, it may be thought an unquestionable indicator, but it is not. Over the years, a number of economists have pointed out several shortcomings of it, such as the fact that some areas are disregarded and the fact that it does not take into account the economic development but only the economic growth.. Only a detailed analysis of its creation can give a good basis to understandhow to intervene for corrections and understand why no alternative indicators could replace GDP. It is a400 years long journey, from Sir William Petty to Sir John Richard Stone, where the different needs within a country have offered the basis to the new economic theories on determining the national income.

Full Text: PDF