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So if I understand correctly we should compare: 1. Median household income (which should mostly be wages and not land, financial capital, technology). 2. Divi
by nightcracker 11y ago
So if I understand correctly we should compare:
1. Median household income (which should mostly be wages and not land, financial capital, technology).
2. Divided by purchasing power parity (to normalize for different prices in the country).
3. Divided by average hours worked per week for households with median income.
This is however assuming that if an employee gets paid X (in purchasing power parity) for their work, then their generated value is some linear constant of X. I don't know how to compensate for the scenario where this is false.
- hueving 11y agoNone of that would account for a massive national surplus of a globally demanded resource (oil in Norway's case). A strong currency based on heavy exports of energy can subsidize all of the other factors.
- will_pseudonym 11y agoAll you have to do is estimate the impact to GDP that has on Norway, and pull it out from the comparison.
- martin_bech 11y agoNorways Currency NOK isnt strong, its actually one of the weaker currencies: Here it is in the last 2 years falling compared to USD and EUR. http://www.xe.com/currencycharts/?from=NOK&to=USD&view=2Y http://www.xe.com/currencycharts/?from=NOK&to=USD&view=2Y http://www.xe.com/currencycharts/?from=NOK&to=EUR&view=2Y http://www.xe.com/currencycharts/?from=NOK&to=EUR&view=2Y
- dennisgorelik 11y agoNorway is oil exporter. Oil is cheap now -> NOK is falling.
- rahimnathwani 11y agoNo, that wouldn't work, due to the effects of my point 2 above. Google 'solow growth model' to get some idea about why.