Diminishing marginal returns justify logging GDP, encoding normative assumptions.
Evidence
The claim is that a 1, 000 USD increase for a wealthy person or country means a lot less to them than a 1, 000 USD increase for a poor person. This produces the flattening curve in the upper regions of GDP per capita. This is another example where normative concerns often play a role. — Gary Goertz, Social Science Concepts and Measurement, 735
Categorization
- XREF: Links to the earlier discussion of the ‘goodness’ of concepts and normative loading in measurement choices.