标题: GDP at factor prices [打印本页] 作者: meghanjackson 时间: 2011-7-13 15:57 标题: GDP at factor prices
Does anyone know what the logic is to arriving at GDP at factor prices, from market prices? As I understand it, many market prices include some sort of tax (VAT) and/or subsidy, so that 'actual price' should equal market price + whatever tax. Anyway, below is the formula from the book. Do you know why you subtract the tax and add the subsidy?
Thanks
GDP at market prices
– indirect taxes
+ subsidies
=
GDP at factor prices
