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Lagging indicators are indicators that usually change after the economy as a whole does. Typically the lag is a few quarters of a year. The unemployment rate is a lagging indicator: employment tends to increase two or three quarters after an upturn in the general economy. [citation needed]. In a performance measuring system, profit earned by a ...
In addition, the European Commission provides a list of different indicators that can be categorised into five categories : GDP and other macro-economic indicators - provided by the System of National Accounts (SNA). Enlarged GDP measures - include costs such as expense of environmental degradation, resource depletion or higher income ...
Performance indicators differ from business drivers and aims (or goals). A school might consider the failure rate of its students as a key performance indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from returning customers as a potential KPI.
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), Gross national income (GNI), net national income (NNI), and adjusted national income (NNI adjusted for natural resource depletion – also called as NNI at factor cost).
Index numbers are used especially to compare business activity, the cost of living, and employment. They enable economists to reduce unwieldy business data into easily understood terms. In contrast to a cost-of-living index based on the true but unknown utility function, a superlative index number is an index number that can be calculated. [1]
The addition of non-cash awards to the total rewards package may bring out the performance potential of people because it separates a reward from being used as or perceived as ordinary salary income. Non-cash awards are thought to motivate higher achievement of and drive greater returns on investment .
Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process.
The most famous examples of this development are the MEW index developed by William Nordhaus and James Tobin in their Measure of Economic Welfare (MEW) in 1972, the Japanese Net National Welfare (NNW) indicator in 1973, the Economic Aspects of Welfare index (EAW) index of Zolatas in 1981, the ISEW indicator of Daly and Cobb in 1989 and the UN's ...