tag:blogger.com,1999:blog-2826531655042170344.post5117376855084917172..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: The Return of the Domestic Economy?Seamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2826531655042170344.post-77428843800994465602012-07-17T20:37:59.318+01:002012-07-17T20:37:59.318+01:00Good to see critique in the world of economics. So...Good to see critique in the world of economics. Something sorely lacking - especially in the era of the so-called Celtic tiger - amongst mainstream economistsEmmetnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-47561583915406007312012-07-17T12:50:10.740+01:002012-07-17T12:50:10.740+01:00Many thanks for the reply.Many thanks for the reply.Rob Snoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-74200728976646765062012-07-13T18:45:59.367+01:002012-07-13T18:45:59.367+01:00@ Rob
Yes, but they won't necessarily be coun...@ Rob<br /><br />Yes, but they won't necessarily be counted as equal value in both. A consumption example is probably best to show this. If someone buys a product for €100 this is added to nominal GDP via the total for consumption. However, if this product was imported at a cost of €80 then the 'value-added' in Ireland is €20 and the €80 cost is subtracted from GDP through imports. So this product appears in both the Consumption and Imports figure in GDP.<br /><br />The same will happen with these large aircraft. When they are imported to Ireland they are included in the import figures and then they are counted as an increase in the capital stock through Investment.<br /><br />As has been pointed out elsewhere one thing that dragged the GDP figures down was the 4.9% jump in imports in the quarter. Depending in the type of imports this is not necessarily a bad thing as the imports will feed through the system via consumption, investment and production. <br /><br />If the imports are replacing domestically produced goods it would not be good as there would be no net increase but if they are coming in for additional consumption, production and investment it will be a good thing.<br /><br />Looking at Annex 1 in the release it seems that most of the increase in imports was due to goods with a slight drop in service imports. Unsurprisingly, given the big jump in large aircraft imports from Q4 2011 to Q1 2012 the increase in goods imports is explained by an increase in imports of Producer Capital Goods. Imports of Consumption Goods and also Materials for Production both fell in the first quarter but in the absence of seasonally adjusted numbers it is hard to tell how significant that is.Seamushttps://www.blogger.com/profile/15679299530222667673noreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-80647281109999990892012-07-13T16:08:13.961+01:002012-07-13T16:08:13.961+01:00Seamus, fair play for going through the in-depth M...Seamus, fair play for going through the in-depth March results.<br /><br />Quick question, can those aircraft imports be recorded as both I (investment) and as M (Imports)?Rob Snoreply@blogger.com