Reference Text
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Given
this
fact,
many
nations
apply
a
value
added
tax
(VAT)
to
compensate
for
losses
in
revenue
that
might
place
labor
groups
at
risk
(Keuschnigg,
2007).
While
the
growth
of
a
GNP
may
be
assessed
using
these
methodologies,
such
growth
does
not
easily
lend
to
predicting
future
growth.
Indeed,
the
sheer
complexity
of
a
nation's
GNP
may
be
the
mitigating
factor,
as
the
wide
range
of
contributors
to
a
GNP
makes
it
difficult
to
predict
future
growth
as
an
aggregate.
One
study,
for
example,
assessed
the
predictability
of
future
growth
of
a
given
GNP
based
on
governmental
announcements
regarding
such
growth.
The
study
concluded
that
such
announcements,
while
reflective
of
current
growth,
did
little
to
foment
elements
that
could
be
used
for
predicting
future
growth
(Rodriguez
&
Schulstad,
2007).
Although
GNP
accounts
for
market
based
outputs
in
the
determination
of
productivity,
it
does
not
include
nonmarket
outputs,
such
as
volunteer
service.
For
example,
disaster
recovery
efforts
like
that
which
occurred
after
Hurricane
Katrina
required
the
work
of
thousands
of
public
safety,
health
care,
military,
and
volunteer
personnel,
but
none
of
what
was
performed
during
this
recovery
effort
contributed
to
the
economy.
Indeed,
although
its
ultimate
impact
was
helping
New
Orleans
reinvigorate
itself,
the
work
that
was
done
was
not
technically
quantifiable
in
terms
of
the
nation's
economic
condition
(Cloutier,
2008).
In
an
interesting
study
of
less
developed
countries
(LDCs),
the
authors
offered
that
that
production
along
the
lines
of
that
which
is
gauged
by
either
gross
domestic
product
(GDP)
or
GNP
is
the
more
applicable
approach
to
studying
an
individual
country's
performance.
Income,
the
analysis
concluded,
is
less
of
an
explanatory
measure
of
the
output
of
certain
LDCs,
while
production
output,
such
as
those
seen
from
export,
appears
to
be
the
more
relevant
aggregation
of
data
on
an
LDC's
economic
condition.
Indeed,
many
LDCs
are
hampered
significantly
by
an
inability
to
even
tax
income
and,
as
a
result,
must
find
alternative
tax
revenues
(Truong
&
Gash,
1979).
Indeed,
there
is
a
wide
range
of
complexities
to
analyzing
all
aspects
of
production
as
the
primary
determinant
of
the
state
of
health
of
a
given
national
economy.
While
the
increasingly
global
marketplace
necessitates
a
level
playing
field
of
data
and
assessing
the
GNP
may
prove
to
be
that
leveling
mechanism,
there
are
other
important
factors
to
consider.
Given
this
fact,
many
nations
apply
a
value
added
tax
(VAT)
to
compensate
for
losses
in
revenue
that
might
place
labor
groups
at
risk
(Keuschnigg,
2007).
While
the
growth
of
a
GNP
may
be
assessed
using
these
methodologies,
such
growth
does
not
easily
lend
to
predicting
future
growth.
Indeed,
the
sheer
complexity
of
a
nation's
GNP
may
be
the
mitigating
factor,
as
the
wide
range