Cannot Quote by Simon Kuznets
“War and peace type products... cannot be added into a national product total until the differences in the valuation due to differences in the institutional mechanisms that determine their respective market prices are corrected for.”
About This Quote
Source Paper: National Income and Product Accounts, 1934
Valuing war and peace products requires adjusting for institutional differences.
In simple terms: Economic totals must account for institutional valuation gaps.
Key Takeaway
Adjust national accounts for institutional variance.
Themes
economics
valuation
institutional analysis
Mood
analytical
technical
Type
academic
economic
When to use this quote
- budget planning
- international trade
- economic modeling
Key Concepts
GDP measurement
policy analysis
Questions to Reflect On
- How to improve valuation accuracy?
- What institutions cause biggest valuation gaps?
A Different Perspective
Data may be incomplete.
