Question
What we are really interested in is the incremental surplus between 2004 and 2015, i.e. the difference between the surplus in 2015 and that in
What we are really interested in is the incremental surplus between 2004 and 2015, i.e. the difference between the surplus in 2015 and that in 2004, to compare to the missing GDP number. So recalculate this surplus number for 2004 using $30,700 for per capita income, 11 hours of leisure per day, and an after-tax wage of $18.19. Also, you will need to inflate this nominal number by 1.21 to put it in terms of 2015 dollars and then apply the 3% surplus number. Finally, only 12% of individuals had access to broadband in 2004 and the population then is 293 million. After all of this, what share of the missing GDP could be explained as incremental gains in consumer surplus? What is the main source of the increase in surplus? Increase in broadband penetration? Changes in amount of leisure? Value of that leisure?
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