The Application of the National Product Formation (Þ) in 120 Countries from 2005 to 2015

Abstract

This paper is interested to propose a new indicator to evaluate the real national final product output and formation from any country. It is based on the construction of a new macroeconomic indicator under the uses of quantitative and qualitative variables. This new macroeconomic indicator is called “the national product formation (Þ)”. Hence, the national product formation (Þ) is using 250 sub-variables that is distributed among ten main-variables that can affect directly or indirectly on the national product formation (Þ) performance annually. The construction of the national product formation (Þ) involves five basic steps follow by – (i) the construction of the maximum potential national product formation (μ); (ii) the calculation of the post-leaking potential national product (Ŀ); (iii) measuring the economic desgrowth (-δ) (iv) the marginal economic desgrowth (-δ’); (v) the historical national product accumulation (Λ). Finally, this paper is going to be applied the national product formation (Þ) in 120 countries from 2005 to 2015.

Keywords: Economic Desgrowth, Economic Modeling, Methodology

JEL Classification: Q54, O40