Chained dollars redux

Doug Henwood dhenwood at panix.com
Mon Jul 19 12:31:06 PDT 1999


Enrique Diaz-Alvarez wrote:


>How do you get the whole, then? If investment category A increases by X,
>category B by Y, how come total investment doesn't grow by X+Y?
>
>(Sorry if this is a stupid question)

It's a bit complicated. See <http://www.bea.doc.gov/bea/an/0597od/maintext.htm> for the official line.


> > Nominal spending on computer investment contributed just 2% of
> > nominal GDP growth in 1998, though, and the broader category of info
> > processing equipment, just 5%; people talk as if this is the whole
> > enchilada these days, but in purely dollar terms, it's more like
> > salsa.
>
>I assume you meant nominal spending _growth_ on computer investment and
>info processing
> equipment?

Yup.

Doug



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