Constantin ANGHELACHE PhD.
Academy of Economic Studies – Bucharest, „Artifex” University of Bucharest
Ligia PRODAN PhD. Student
Academy of Economic Studies, Bucharest
Carmen Judith GRIGORESCU PhD
“Dimitrie Cantemir” Christian University, Bucharest,
Raluca Georgiana MOSCU PhD Student
Academy of Economic Studies, Bucharest
Abstract
This article proposes a critical analysis of the gross domestic product on its ability to measure social welfare in Romania. The article analyzes the evolution of private consumption correlated with GDP. To achieve correlation between the two indicators, the article suggests using the linear regression model, in which private consumption is considered as an outcome variable and gross domestic product as a variable factor. The reason for choosing GDP to explain endogenous variable, private consumption, was based on logical theoretical and empirical arguments, which are related to socio-economic dynamics and interdependent processes.
Key words: social welfare, private consumption, gross domestic product, regression, model
