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Here, for example, are a bunch of welfare indicators correlated against both GDP per capita (x-axis) and AIC (y-axis). Clearly AIC does a better job of reflecting these other indicators:pic.twitter.com/yyX5cfrXNC
Maybe this is common sense, but I’ve always been lazy and just used GDP per capita for my (admittedly off-the-cuff) analyses.
It’s always worked well enough in my travels. Dunno what the margin of improvement here is honestly.
Good share. I think we all tend to fall into that trap.
This was made very clear to me when looking at Soviet Vs American GDP. the share of expenditure in the military and investment was far higher in the USSR so the amount of GDP for consumption was far smaller than it seemed
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