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Peter Dizikes
Facebook is free, but should it count toward GDP anyway?
World Economic Forum, 2019
What's inside?
Measures of gross domestic product fail to capture the real value of free online services.
Recommendation
Measures of gross domestic product gauge the monetary value of a nation’s economic output of most good and services, but not all of them. Free online services, like those of Facebook, Gmail and YouTube, create meaningful value that individuals prize – and price – highly, according to journalist Peter Dizikes in this concise overview of current research on the topic. He writes that society needs a better way of understanding how technology is adding to people’s economic well-being. Econometricians, it would seem, have their work cut out for them, as this brief but thought-provoking piece makes clear.
Summary
About the Author
Peter Dizikes is a writer for the MIT News Office.
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