New Article Links Austrian and Keynesian Economics

by Mark Skousen

The Journal of Private Enterprise has published my paper on Gross Output (GO), the new supply-side macro statistic that the federal government is now publishing quarterly along with GDP.  It is entitled “Linking Austrian and Keynesian Economics:  A Variation of a Theme.”  Go to http://journal.apee.org/index.php/Parte7_Journal_of_Private_Enterprise_vol_30_no_4.pdf

It’s one of four articles in the Journal of Private Enterprise honoring the work of Roger Garrison, the “Austrian” economist at Auburn U who recently retired.  I put together a Festschrift in his honor at the annual Association for Private Enterprise Education (APEE) meeting last year.

A few updates on the GO statistic since I wrote this article:

  1. I’ve dropped my own term GDE and now use “adjusted GO” to describe a more complete measure of spending at all stages of production.
  1. I’ve found an easy way to explain the relationship between GO and GDP that accountants and finance people grasp right away:  Just as a good accountant or financial analyst looks at both the “top line” (revenues/sales) and the “bottom line” (earnings/net income) of a firm’s financial statement, so now economists look at the “top line” (GO or total revenues at all stages of production) and “bottom line” (GDP or value added) of national income accounting.  In sum, GO is the top line and GDP is the bottom line of national income accounting.
  1. Top textbooks are now planning to incorporate GO into their chapters on national income accounting.   Roger LeRoy Miller was the first to write up GO in his latest “Economics Today” textbook, and plans to expand GO in the next edition.
  1. In response to the Federal government (BEA) publishing GO on a quarterly basis, NYU Press has published a new 3rd edition of my work, “The Structure of Production” (1990, 2007, 2015), with a new introduction on GO.  See the announcement here: http://mskousen.com/2015/09/announcing-the-new-third-edition-of-the-structure-of-production/

 

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