Add disposition / quality of quantity value: nominal versus real

[l-emele]

Description of the issue

In issue #1487 we want to add the following classes:

• constant monetary value / price
• nominal monetary value / price
• gross domestic product real growth rate
• gross domestic product nominal growth rate
• nominal GDP
• real GDP

To solve this, we probably needs some kind of multi-hierarchy

• economic value (already implemented) deprecated
• quantity value
  • has disposition / quality constant or nominal

Ideas of solution

If you already have ideas for the solution describe them here

Workflow checklist

• I discussed the issue with someone else than me before working on a solution
• I already read the latest version of the workflow for this repository
• The goal of this ontology is clear to me

I am aware that

• every entry in the ontology should have a definition
• classes should arise from concepts rather than from words

[l-emele]

From our conversions paper:

The nominal value measures the value of a good, market basket or a nations economic performance in terms of money, which e.g. depends on the inflation rate. The real value measures against goods or services. It is adjusted for inflation and excludes its effect.

From Wikipedia:

In economics, nominal value refers to value measured in terms of absolute money amounts, whereas real value is considered and measured against the actual goods or services for which it can be exchanged at a given time. Real value takes into account inflation and the value of an asset in relation to its purchasing power.
In macroeconomics, the real gross domestic product compensates for inflation so economists can exclude inflation from growth figures, and see how much an economy actually grows. Nominal GDP would include inflation, and thus be higher.

Proposals:

• Nominal is a quality of an economic value that expresses that the economic value is not adjusted to compensate for inflation.
  • Elucidation: A nominal price is the price as requested by the seller.
  • nominal DisjointWith: real
• Real is a quality of an economic value that expresses that the economic value is adjusted to compensate for inflation.
• A nominal economic value is an economic value that was not adjusted to compensate for inflation.
  • 'nominal economic value' EquivalentTo: 'economic value' and 'has quality' some nominal
  • 'nominal economic value' DisjointWith: 'real economic value'
• A real economic value is an economic value that was adjusted to compensate for inflation.
  • 'real economic value' EquivalentTo: 'economic value' and 'has quality' some real

@han-f : What do you think?

[han-f]

I read that some time ago and was then caught doing something else. I like this suggestions. So thumbs up

[l-emele]

From oeo-dev-87:

• erst mal verschieben
• grundsätzliche Idee, "real" und "nominal" als Eigenschaften von ökonomischen Größen
• @stap-m : nochmal paper recherchieren zu qualities of quantities

[l-emele]

I just saw, that we also have issue #1035, that basically deals with the same problem. To summarise from that issue:

• Parameters typically used for projecting scenarios have two metrics that are related to expressing monetary values (typically GDP, energy prices) and both "corrects" for inflation:
  • constant price
  • real growth rate
• Nominal values do not "correct" for inflation:
  • nominal price
  • nominal growth rate
• So the concepts of constant prices and nominal prices apply to everything that has as unit currency or a composed unit with a currency as part of the unit (e.g. for the latter: €/MW, $/GJ).
• concepts of real growth rate and nominal growth rate apply to concepts that are ratios like inflation rate and GDP growth
• There are a qualities of a quantity.

I'll close #1035 and we continue here as this is the more recent one.

[l-emele]

As we deprecated economic value I renamed the issue (and will clear my assignment to the end of the SIROP project).