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Extra info for Accounting for War: Soviet Production, Employment, and the Defence Burden, 1940–1945

Sample text

Real GNP, measured by the nominal value of output, deflated by the Laspeyres price index, will therefore appear to grow more slowly. In fact, it will form a Paasche index of volume, weighted in this case by the current (1937) structure of output, as the following expression shows: Paasche volume index = nominal value index Laspeyres price index XXX111 xxxiv Note on index number relativity In this book, the converse is always preferred. Index numbers of real output are always Laspeyres, with 1937 or 1940 as the base year, and price indexes are always Paasche.

4. 4 - - Sources: Row 1: Terpilovskii (1967), 29. Rows 2-6: RGAE, f. 7733, op. 36, d. 1892,1. 86; 1941 is July-December, and 1945 is January-June. 4 shows that defence outlays on this definition amounted to 57 billion rubles in 1940, rising to 108 or 111 billion rubles in 1942 and a peak of 138 or 139 billion rubles in 1944. Defence uses of the net material product In the national accounts, which were based upon the material product system, a more restrictive concept of defence outlays was employed.

One was the belief that all aggregate statistics are lies; the material of popular experience is impossible to quantify, and the only objective reality is the raw, unprocessed experience of personal witness. This is a view which the quantitative economist is professionally bound to reject. By definition, large scale historical processes such as long-run economic growth and the impact of world wars had an inescapable quantitative dimension. Ultimately, World War II was decided by quantities - that side won the war which had the largest combined GNP at the outset, and which was willing and able to throw the greatest quantity of men and munitions into the battlefield.

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