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GDP: A Brief but Affectionate History Hardcover – 28 Jan 2014

4.5 out of 5 stars 10 customer reviews

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Product details

  • Hardcover: 168 pages
  • Publisher: Princeton University Press (28 Jan. 2014)
  • Language: English
  • ISBN-10: 0691156794
  • ISBN-13: 978-0691156798
  • Product Dimensions: 1.9 x 15.2 x 22.9 cm
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (10 customer reviews)
  • Amazon Bestsellers Rank: 235,859 in Books (See Top 100 in Books)
  • See Complete Table of Contents

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Review

"[E]xcellent."--Adam Creighton, "The Australian"



"[E]xcellent."--Adam Creighton, "The Australian"

"[E]xcellent."--Adam Creighton, "The Australian"


One of "Choice"'s Outstanding Academic Titles for 2014One of "The Books "Quartz" Read" in 2014

One of "The Wall Street Journal"'s Best Books of 2014One of "Choice"'s Outstanding Academic Titles for 2014One of "FA-mag.com"'s Books of the Year 2014One of "The Books "Quartz" Read" in 2014One of "Minnpost.com"'s 'Three (plus) books for the econ buff on your list' 2014Longlisted for the FT & McKinsey Business Book of the Year 2014


Winner of the 2015 Bronze Medal in Economics, Axiom Business Book Awards

One of "The Wall Street Journal"'s Best Books of 2014

One of "Choice"'s Outstanding Academic Titles for 2014

One of "FA-mag.com"'s Books of the Year 2014

One of "The Books "Quartz" Read" in 2014

One of "Minnpost.com"'s 'Three (plus) books for the econ buff on your list' 2014

Longlisted for the FT & McKinsey Business Book of the Year 2014


"[A] little charmer of a book . . . "GDP: A Brief but Affectionate History" is just what the title promises. . . . Cowperthwaite himself would nod in agreement over Ms. Coyle's informed discussion of what the GDP misses and how it misfires. . . . Ms. Coyle--a graceful and witty writer, by the way--recounts familiar problems and adds some new ones. . . . [E]xcellent."--James Grant, "Wall Street Journal"

"Diane Coyle's new book, "GDP: A Brief But Affectionate History," is a timely contribution to discussions of modern economic performance."--Arnold Kling, "American"

"[S]mart and lucid. . . . [S]hort but masterful."--Todd G. Buchholz, "Finance & Development"

"[G]reat (and well-timed) new book."--Uri Friedman, "The Atlantic"

""GDP: A Brief But Affectionate History" is a fascinating 140-page book that I cannot recommend highly enough. This is simply the best book on GDP that I've ever seen."--John Mauldin

"[A] little charmer of a book."--"Wall Street Journal" (A Best Non-Fiction Book of 2014)

""GDP" is a thought-provoking account of how the gross domestic product statistic came to be so important. . . . The book is a useful and timely contribution."--Louise Rawlings, "Economic Record"

"Coyle s account of the emergence and hegemony of GDP is a timely one, capturing in lucid historical detail the major conceptual weaknesses in the construction and use of GDP and the menu of alternative measures one might turn to."--Atiyab Sultan, "Cambridge Humanities Review""

"Coyle s greatest achievement is to succinctly describe the history of the concept as it emerged in the 1940s as a result of wartime politics obsessed with measuring productive capacity in an economy."--Atiyab Sultan, "Cambridge Humanities Review""

"Diane Coyle s eloquently written and accessible book provides a rich account of the history of GDP."--Johannes Hirata, "International Review of Economics""

"Coyle's book "GDP: A Brief but Affectionate History" . . . provide[s] comprehensive and readable accounts of the history of national income and of the role of GDP in contemporary political and economic life."--David Throsby, "Times Literary Supplement"

Winner of the 2015 Bronze Medal in Economics, Axiom Business Book Awards
One of "The Wall Street Journal"'s Best Books of 2014
One of "Choice"'s Outstanding Academic Titles for 2014
One of "FA-mag.com"'s Books of the Year 2014
One of "The Books "Quartz" Read" in 2014
One of "Minnpost.com"'s 'Three (plus) books for the econ buff on your list' 2014
Longlisted for the FT & McKinsey Business Book of the Year 2014

"Coyle's book GDP: A Brief but Affectionate History . . . provide[s] comprehensive and readable accounts of the history of national income and of the role of GDP in contemporary political and economic life."--David Throsby, Times Literary Supplement

"GDP is, as Diane Coyle points out in her entertaining and informative GDP: A Brief but Affectionate History, a bodge, an ongoing argument."--John Lanchester, London Review of Books

"[A] little charmer of a book . . . GDP: A Brief but Affectionate History is just what the title promises. . . . Cowperthwaite himself would nod in agreement over Ms. Coyle's informed discussion of what the GDP misses and how it misfires. . . . Ms. Coyle--a graceful and witty writer, by the way--recounts familiar problems and adds some new ones. . . . [E]xcellent."--James Grant, Wall Street Journal

"Anyone who wants to know how GDP and the SNA have come to play such important roles in economic policy-making will gain from reading Coyle's book. As will anyone who wants to gain more understanding of the concept's strengths and weaknesses."--Nicholas Oulton, Science

"Diane Coyle's new book, GDP: A Brief But Affectionate History, is a timely contribution to discussions of modern economic performance."--Arnold Kling, American

"[E]xcellent."--Adam Creighton, The Australian

"Diane Coyle's book is as good a simple guide as we are likely to see."--Samuel Brittan, Financial Times

"Coyle does good work explicating a topic that few understand, even if it affects each of us daily. A pleasure for facts-and-numbers geeks, though accessibly written and full of meaningful real-world examples."--Kirkus Reviews

"[S]mart and lucid. . . . [S]hort but masterful."--Todd G. Buchholz, Finance & Development

"[G]reat (and well-timed) new book."--Uri Friedman, The Atlantic

"In a charming and accessible new book, Diane Coyle untangles the history, assumptions, challenges and shortcomings of this popular rhetorical device, which has become so central to policy debates around the world. . . . Coyle's book is a good primer for the average citizen as well as the seasoned economist."--Adam Gurri, Umlaut"

"[I]t is interesting and important, particularly when it comes to the emphasis now given to GDP, and the inadequacies of this now time-honoured measurement of how our economies are doing. . . . With clarity and precision, she explains its strengths and weaknesses."--Peter Day, BBC News Business

"Diane Coyle has bravely attempted in a recent book to make the subject once more accessible, and even interesting."--John Kay, Financial Times

"[T]his is as engaging a book about GDP as you could ever hope to read. It falls into that genre of books that are 'biographies of things'--be they histories of longitude, the number zero or the potato--and is both enlightening and entertaining."--Andrew Sawers, FS Focus

"GDP: A Brief But Affectionate History is a fascinating 140-page book that I cannot recommend highly enough. This is simply the best book on GDP that I've ever seen."--John Mauldin

"As a potted history of approaches to quantifying national output from the 18th century onward, GDP: A Brief but Affectionate History deserves high marks. It is particularly edifying to learn about the military motivation behind the initial attempts."--Martin S. Fridson, Financial Analysts Journal

"The strongest part of the book charts the development of national accounting from the 17th century through to the creation of GDP itself and its literal and metaphorical rises and falls in the 20th and 21st centuries. . . . This is lively and surprisingly readable stuff."--Eilis Lawlor, LSE Review of Books"

"Coyle has written an engaging, introductory to mid-level book on the GDP that makes sense of a statistic that hardly anyone actually understands. . . . It does not require any training in economics, but it covers many topics that even professional economists would find beneficial, including an argument that GDP is an increasingly inappropriate measure for the 21st century."--Choice

"[A] little charmer of a book."--Wall Street Journal (A Best Non-Fiction Book of 2014)

"GDP is a thought-provoking account of how the gross domestic product statistic came to be so important. . . . The book is a useful and timely contribution."--Louise Rawlings, Economic Record

"Coyle is surely right when she says that GDP is not outmoded, despite all the problems. The people who use GDP need to understand what it is and what it isn't, and to know what are its strengths and weaknesses. They should read this invaluable and accessible guide."--Bill Allen, Business Economists

"Coyle's account of the emergence and hegemony of GDP is a timely one, capturing in lucid historical detail the major conceptual weaknesses in the construction and use of GDP and the menu of alternative measures one might turn to."--Atiyab Sultan, Cambridge Humanities Review

"Coyle takes the reader on a whistle-stop tour of the development workhorse of economic modeling and analysis. . . . The book developed out of a talk by the author in 2011 and it retains the liveliness of a performance."--Central Banking Journal

"Coyle's greatest achievement is to succinctly describe the history of the concept as it emerged in the 1940s as a result of wartime politics obsessed with measuring productive capacity in an economy."--Atiyab Sultan, Cambridge Humanities Review

"Diane Coyle's eloquently written and accessible book provides a rich account of the history of GDP."--Johannes Hirata, International Review of Economics

"A lively account."--Gillian Tett, Financial Times

Winner of the 2015 Bronze Medal in Economics, Axiom Business Book Awards

One of The Wall Street Journal's Best Books of 2014

One of Choice's Outstanding Academic Titles for 2014

One of FA-mag.com's Books of the Year 2014

One of "The Books Quartz Read" in 2014

One of Minnpost.com's 'Three (plus) books for the econ buff on your list' 2014

Longlisted for the Financial Times and McKinsey Business Book of the Year 2014

From the Back Cover

"Diane Coyle renders GDP accessible and introduces a much-needed historical perspective to the discourse of what we measure and why. A must-read for those interested in the far-reaching impact of GDP on the global economy, just as we seek ways to go beyond it."--Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development

"Countries are judged by their success in producing GDP. But what is it and where do those numbers reported on television come from? Diane Coyle makes GDP come to life--we see its strengths and its fallibilities, and we learn to understand and respect both."--Mervyn King, governor of the Bank of England, 2003-2013

"This is an engaging and witty but also profoundly important book. Diane Coyle clearly and elegantly explains the fundamental difficulties of GDP--and how this headline figure is liable to radical change by apparently simple changes in method. She also provides a nice treatment of alternative proposals such as happiness surveys."--Harold James, author of Making the European Monetary Union

"Well written, interesting, and useful, this book will appeal to many readers. I learned a lot from it."--Robert Hahn, University of Oxford

"

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Format: Hardcover
Gross Domestic Product is a concept so massive, so convoluted, so compromised by rules, exceptions, patches, and qualifications, that only a handful of people in the world fully understand it, and that does not include the commentators and politicians who bandy it about, daily. “There is no such entity out there as GDP in the real world, waiting to be measured by economists. It is an abstract idea.” That sets the tone of Diane Coyle’s excellent and sympathetic examination of GDP. Then it’s on into the impenetrable forest.

Inconsistencies abound. If you care for your child, it doesn’t count in GDP. If you take in neighborhood children, it does. If you paint your bedroom, it doesn’t count. If you hire the kid next door, it does. Technology and technical improvements don’t count much, because we don’t know how to measure and incorporate them. Even in the mid 90s, we knew that technology was actually trimming inflation by 1.3%, but that was never acknowledged. This is the black hole of GDP, as tech becomes huge.

A special conundrum comes from the soaring financial sector, which makes money without actually producing anything. Accounting for that has evolved from “Alice and Wonderland” to “statistical mirages” that warp the GDPs of many nations. Financials account for nearly 8% of US GDP, but the way we account for them overstates their heft by 20-50%. For example, both borrowing are lending are considered productive businesses, and their numbers pad GDP both ways, using the same funds.

Coyle stays focused, giving us an overview that is understandable (as well as frustrating). She does it by structuring her book as history, showing how economies and GDP have evolved over eras.
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The aim of this book is to get across a bunch of messages about GDP

1. It was invented to help measure the ability of a state to wage war
2. As such, it's rather good at measuring physical production
3. It's as good as useless at measuring stuff that has no market price
4. It's rather terrible at measuring services
5. It tends to catch up slowly with positive developments that are difficult to quantify
6. It currently understates how well we're doing because we benefit from a number of novel consumer surpluses
7. It overstates the contribution of finance, which affords the authorities an excuse to favor financial institutions
8. Regardless, it's better than the alternatives if you had to sum up in one figure if we're doing better or worse than before

In terms of making these points, the book is a triumph. But it's not "engaging and witty" as it says on the cover.

And it is not in the least technical. The most complicated equation in here is the good, old AD=C+I+G+(x-m). I was kind of hoping to find out about annualizing quarterly GDP or the effect of a surprise in April inputs versus a surprise in June inputs on Q2 numbers. Or a worked example of how to build it for one quarter. Or a comparison of its composition through history. Dunno, something about how agriculture is no longer as important as it once was. Or a comparison between G7 countries and developing countries. You won't find any of that here. The only technical discussion (without the math) is about converting Chinese GDP into western-equivalent GDP via PPP and its alternatives.

It's really for the layman, basically, except I'm not 100% sure that it's simple enough for the layman.

That said, it kept me good company in the tube and it opens the discussion with an anecdote from my country, so I'll award it 4 stars.
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Diane Coyle enjoyable book is not only an entertaining history of how GDP became the most prominent measure of economic output but also a very valuable deep dive in the uncertainties of the measurement of GDP.

Lay people who want to get an introduction into a basic economic concept will find this book not too demanding and be able to get up to speed in a very short time.

Professional economist on the other hand might find the book too superficial and not detailed enough, but as the author points out early on in the book that is a trade-off that she has made by choice.

In my view this book provides the most benefit to professional investors and financial analysts who deal with GDP numbers on a daily basis - often without fully understanding the numbers. How often have we seen a measure of income like GDP compared to specific assets like the debt of a country even though such a comparison is not technically valid? This book will help investors understand the use and limitations of GDP and the uncertainty around its measurements more thoroughly and as a result will help them make better decisions with regards to macro economic developments in different countries.
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Diane Coyle addresses an often used, but not fully understood term, and through the process of the study, reveals why a full understanding of GDP is almost impossible to ascertain.
This reader has long been aware that GDP can be manipulated, misused and abused for political purposes, whether it was the now infamous overstating of the health of the Greek economy, or the general overvaluation of China's economy. As economic growth is often used as a benchmark of sorts for a bill of political health, it made sense to proceed with a comprehensive evaluation of the idea.
Coyle examines the history of GDP, from it's origins as a way of accounting the entire wealth of the Engish nation for military purposes in the late 17th century, to it's official coinage in the 20th century.
While Diane Coyle does not address the current issue of China, Coyle illustrates how the Soviet economy was vastly overstated, out of pressure of meeting targets and quotas, to the invariables of measuring economy today.
Diane Coyle examines other factors, such as Human Development Index and environmental degradation, but she concludes that GDP is a rather flawed measure that fails to account for many factors, such as websites, technological development, variety of products, and other variables that are difficult to quantify.
The general conclusion is that GDP is a flawed measure, but one that is not readily replaceable. A decent and concise read, that probably requires a second reading for proper understanding.
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