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Theoretical Aspects of Comparing Economic Capacity.
Final technical note,
STANFORD RESEARCH INST ARLINGTON VA STRATEGIC STUDIES CENTER
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The report outlines some of the theoretical difficulties associated with comparing U.S. and Soviet economic magnitudes like Gross National Product GNP, the output of military goods and services, and RDT and E inputs. A basic difficulty common to all such comparisons is that, for all significant economic analysis, multi-dimensional vectors rather than single numerical quantities are being compared. The concepts and issues arising from this fundamental difficulty apply not only to GNP comparisons but also to the other types of economic comparisons. Although the focus here is on comparing U.S. and Soviet measures, the issues raised in the report cover comparisons of any two countries or of a single country at two points in time. Author
APPROVED FOR PUBLIC RELEASE