Macro-economic and monetary concepts

[l-emele]

Description of the issue

Part of the SIROP project is to include macro-economic and time dependent monetary concepts. We had an Oeko-internal meeting and identified a list of missing concepts including some first definition proposals and a priority. This meta issue deals with macro-economic concepts. See also parallel issues on prices (#1488) and policies and measures (#1545).

Next step would be to discuss these concepts at an OEO dev meeting. Afterwards we might split the list into further sub-issues for closely related concepts.

Ideas of solution

English term	German term	Definition proposal	Comment	Unit	Priority & issue
population count	Bevölkerungszahl	A population count is a quantity value to measure the size of a population.	population (object aggregate) <> population count (quantity)	count unit	high (already implemented)
gross domestic product (GDP)	Bruttoinlandsprodukt (BIP)	A gross domestic product is an economic value that represents the broadest measure of aggregate economic activity, measuring the total unduplicated market value of all final goods and services produced within a statistical area in a period.		currency? (no unit implemented)	high #454 (already implemented)
annual GDP growth	Jährliche Wachstumsrate des BIP	Annual GDP growth is an economic value that quantifies the difference between GDP in one year compared to the previous year	method t/(t-1) as editor note	percent	high #1035 (already implemented)
average annual growth rate	durchschnittliche jährliche Wachstumsrate	The average annual growth rate is a fraction value that depicts the average increase or decrease in the value of a variable over a specified period of time		percent (per year)	high
linear annual growth rate		A linear annual growth rate is an average annual growth rate that ...			medium
compound annual growth rate		A linear annual growth rate is an average annual growth rate that ...			medium
constant monetary value / price	Realer Wert / Preis	A constant monetary value / price is a value / price that was adjusted for inflation / deflation	Inflation is excluded and thus the price is directly comparable with prices from other points in time.	currency?	high
nominal monetary value / price	Nominaler Wert / Preis	A nominal monetary value / price is a value / price that was not adjusted for inflation / deflation		currency?	high
nominal (economic) growth rate	Nominale (ökonomische) Wachstumsrate	A nominal economic growth rate is a fraction value that measures economic growth, from one period to another, not adjusted for inflation / deflation		percent	medium
real (economic) growth rate	Reale (ökonomische) Wachstumsrate	A real economic growth rate is a fraction value that measures economic growth, from one period to another, adjusted for inflation / deflation		percent	medium
gross domestic product real growth rate		A gross domestic product real growth rate is a fraction value that quantifies the difference between GDP in one year compared to the previous year, adjusted for inflation / deflation.		percent	high
nominal GDP	Nominales GDP	Nominal GDP is an economic value that expresses GDP nominally, that means including inflation / deflation		currency	high #1035
real GDP	Reales BIP	Real GDP is an economic value that expresses GDP adjusted for inflation / deflation		Currency	high #1035
gross value added	Bruttowertschöpfung	A gross value added is an economic value that ...			medium
inflation	Inflation	Inflation is a general increase in monetary prices over time.	Inflation reduces the purchasing power. (Inflation in general is a concept, the inflation rate quantifies it and this can be used to adjust a nominal value for inflation, i.e. to transform it into a real value.)	none	high
inflation rate	Inflationsrate	Current definition: Inflation rate is an economic value reprensenting the ratio between the monetary price for a good at two different points in time that equalises differences in monetary price levels between these two points in time.	Proposal for new definition: Inflation rate is an economic value representing the ratio between the monetary price for a good at two different points in time. The inflation rate can be used to equalise differences in monetary price levels between these two points in time when the monetary prices increased due to inflation between those two points in time.	percent	#335 (already implemented)
deflation	Deflation	Deflation is a general decrease in monetary prices over time.	Deflation increases the purchasing power. (Deflation in general is a concept, the deflation rate quantifies it and this can be used to adjust a nominal value for deflation, i.e. to transform it into a real value. )		high
deflations rate	Deflationsrate	Deflation rate is an economic value representing the ratio between the monetary price for a good at two different points in time. The deflation rate can be used to equalises differences in monetary price levels between these two points in time when the monetary prices descreased due to deflation between those two points in time.	Actually, the definition of inflation rate can be used, just the other way round, i.e. it is a deflation rate if prices have fallen between two points in time due to deflation and an inflation rate if prices have risen due to inflation. But I think the definition could be improved. But right now I don't know how.	percent	high
deflation adjustment	Deflationsbereinigung				medium
deflator	Deflator		Deflator = implicit price index (The implicit price index is the result in current prices converted to a measure divided by the corresponding price-adjusted variable, source: Destatis		medium
market basket / consumer basket	Warenkorb		Basket basket for the determination of the inflation rate		low
currency conversion rate	Währungsumrechnungskurs			currency per currency	medium
price index	Preisindex	A price index is an economic value that …			high
Euro	Euro	Euro is a curreny that is used in the European Union / Euro area.	Individuals of currency?		medium
US dollar	US-Dollar	US dollar is the currency of the United States and other countries. It is an important reserve currency.	Individuals of currency?		medium
Number of households	Anzahl der Haushalte				medium
Haushaltsgröße	Household size				medium
Disposable income of households	Haushaltsnettoeinkommen				low
Carbon intensity	CO2-Intensität				medium
Carbon Intensity of the overall economy	CO2-Intensität der Volkswirtschaft				low
energy intensity	Energieintensität				medium

Workflow checklist

• I discussed the issue with someone else than me before working on a solution
• I already read the latest version of the workflow for this repository
• The goal of this ontology is clear to me

I am aware that

• every entry in the ontology should have a definition
• classes should arise from concepts rather than from words

[han-f]

I think this meta issue looks good and we can have this as a topic at an OEO dev meeting. I think we would need to have some time to discuss these and maybe also include persons with economic expertise that are currently not regularly taking part in the meetings.

[l-emele]

I've put this issue on the agenda for OEO dev meeting 60: https://etherpad.wikimedia.org/p/oeo-dev-60

[areleu]

Probably related: wage, worker wage, minimum wage etc. these are used for OM value estimation sometimes.

[l-emele]

Conclusions from OEO dev meeting 60:

Implement as proposed:

• Add class: population count: Def: A population count is a quantity value to measure the size of a population.
  • axiom: 'population count' 'has unit' some 'count unit'
• Add axiom: 'gross domestic product' 'has unit' some 'currency per time unit'
• Add class: annual GDP growth: Annual GDP growth is an economic value that quantifies the difference between GDP in one year compared to the previous year.
  • axiom: 'annual GDP growth' 'has unit' some percent
  • add formula on how this is caclulated as additional information
• average annual growth rate: The average annual growth rate is a fraction value that depicts the average increase or decrease in the value of a variable over a specified period of time.
  • axiom: 'average annual growth rate' 'has unit' some percent
  • suggestions: add formula on how this can be calculated (e.g. linear, compound average annual growth)

Topics that made progress, but need further discussions

nominal versus real

• constant monetary value / price
• nominal monetary value / price
• gross domestic product real growth rate
• gross domestic product nominal growth rate
• nominal GDP
• real GDP

To solve this, we probably needs some kind of multi-hierarchy

• economic value (already implemented)
  • has disposition / quality constant or nominal

=> Create separate issue #1585

Inflation-related topics

• price change: A price change is a process in which monetary prices of some goods or services increase over time.

• market basket:

  • First proposal: A market basket is a collection of goods and services defined by an organisation which exhibit a level of similarity because of which they are attributed to the basket
  • Note: we need to define output of a service to be able to include it properly.
    • Relevant, Barry Smith: Towards an Ontology of Social Services ICBO, 2022: https://www.youtube.co/watch?v=aPvYcqWgyWE
    • => separate issue Add something like service product or non-material good #1584

• inflation: Last proposal: Inflation is a price change of a consumer basket over time

• process attribute: inflation rate is a process attribute that describes the price increase over time.

• quantity value: Inflation rate value is a fraction value that measures the inflation rate.

  • Unit: percent per time unit

[l-emele]

@stap-m: The parts in the "Implement as proposed" section are probably very easy to implement and probably a good start for your OEO newcomers.

[l-emele]

@stap-m : Any news on the implementation? Else I could do that in the next days.

[stap-m]

My students are going to implement this. They are just geting started, so this might need a further couple of days.

[h-spinde]

Sorry for the delay!
I'm going to implement everything under "Implement as proposed" as soon as possible.

[h-spinde]

I have created a pull request with the changes to 'gross domestic product' and the new classes 'population count' and 'annual GDP growth' added.

However, when disucssing the issue with @stap-m and @fabianneuhaus we agreed that 'annual growth rate' should not yet be implemented, because it would make more sense to define it as a process attribute rather than a fraction value. Any thought on this?

[stap-m]

@h-spinde once you merge the PR, please indicate in the table above, which concepts are done.