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by amalcon
2695 days ago
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Transfer payments are presumably excluded because GDP traditionally excludes transfer payments. Including something in the numerator, but not in the denominator, is a good way to get weird ratios. E.g. it would be possible (though it would not presently happen in the US) to have a spending:GDP ratio greater than one. I do agree that it would be better to use some other denominator that does not have this problem, but it isn't a crazy decision to begin with. |
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