Consideration of risk in the measurement of gross domestic product and its influence on behavioral change

This paper aims to integrate risk factors into the measurement of GDP in some areas. We took building quality for example and our analysis showed that lack of risk consideration would cause insufficient incentive and restraint so that local government would not pay much attention to the quality of building and its risk-resistant ability in China today. Normative analysis was conducted in this paper to discuss the effect of an adjustment of the measurement of GDP. According to our analysis, the adjustment of the measuring method will make the quality of building play an important role in GDP measurement. In view of the fact that GDP is a primary index for measuring the performance of the local government in China, this change will make the local government pay more attention to the quality of building in order to get a higher GDP.