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Wed 10 Aug, 2016 11:25 am
Hello, I am an AP Economics teacher who just started using a new textbook for class (Krugman's Economics for AP). While putting together a lesson plan on the Savings-Investment Spending Identity, I came across the following example in the book. I understand this principle very well but can't seem to reconcile these numbers. Any thoughts?
-In 2012, investment spending in the United States was $2,475.2 billion
-Private savings totaled $1,491.7 billion, offset by a $1,109.7 billion budget deficit
-Capital inflows totaled $446 billion
The book states there is a $17 billion "statistical discrepancy"
My calculation using the formula I have always taught brings $1937.7 billion (National savings + capital inflow). This is far short of the $2,475.2 billion investment spending figure. Am I missing something here? Just don't want my kids to be confused
Thanks so much for your help
@bmacy63,
The Investment as percent of GDP in the United States was reported at 15.03 percent of GDP in 2009, according to the International Monetary Fund (IMF).
UNITED STATES INVESTMENT AS PERCENT OF GDP
United States ยท GDP (current US$)
$14.42 trillion USD (2009)
@bmacy63,
Quote:-In 2012, investment spending in the United States was $2,475.2 billion
-Private savings totaled $1,491.7 billion, offset by a $1,109.7 billion budget deficit
-Capital inflows totaled $446 billion
The book states there is a $17 billion "statistical discrepancy"
My calculation using the formula I have always taught brings $1937.7 billion (National savings + capital inflow). This is far short of the $2,475.2 billion investment spending figure. Am I missing something here? Just don't want my kids to be confused
-In 2012, investment spending in the United States was $2,475.2 billion
THIS EQUALS
-Private savings totaled
$3540.9 billion, offset by a
$1,487.7 billion budget deficit
-Capital inflows
totaled $439 billion
there is a $17 billion "statistical discrepancy"
https://books.google.com.au/books?id=wDrRCgAAQBAJ&pg=PT500&lpg=PT500&dq=In+2012,+investment+spending+in+the+United+States+was+$2,475.2+billion&source=bl&ots=LhoZou7A4r&sig=3rurVFgwFdgzNgsXQjwy9tvvOSw&hl=en&sa=X&ved=0ahUKEwiMvY-CurjOAhXGp5QKHYGyAMYQ6AEIIDAB#v=onepage&q=In%202012%2C%20investment%20spending%20in%20the%20United%20States%20was%20%242%2C475.2%20billion&f=false
@fobvius,
This makes complete sense now. Thanks so much for providing a resource for these numbers. The data/numbers I put in my post were straight from the textbook. Am I to assume this is a publishing error?
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