Professor John McHale:

We have developed the hybrid measure of fiscal capacity because although the standard is GDP, GNP is potentially relevant for Ireland. If one subtracts GNP from GDP, the fiscal capacity that comes from that excess is less than GNP, but is not zero. Our hybrid measure uses differential weights and the reality of an overall fiscal capacity measure is somewhere between GDP and GNP. An ideal measure for Ireland would be closer to the hybrid measure.