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Does deflation method matter for productivity measures?

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Author Info
Giorgio Garau ()
P. Lecca
L. Schirru

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Abstract

In this paper, we argue against the use the double deflation method to produce an equilibrating system of account at a constant price. In fact, by relaxing such a condition, by means of the single deflation method, we obtain a measure of purchasing power transfer that can be decomposed in productivity and market distortion. Results are presented for the evolution of the Italian economy for the periods 1995-2002

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Publisher Info
Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200901.

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Date of creation: 2009
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Handle: RePEc:cns:cnscwp:200901

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Related research
Keywords: National Account; Prices Index; Total Factor Productivity; Input Output;

Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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  1. Fontela, Emilio, 1989. "Industrial Structures and Economic Growth: An Input-Output Perspective," Economic Systems Research, Taylor and Francis Journals, vol. 1(1), pages 45-52.
  2. Babeau, Andre, 1978. "The Application of the Constant Price Method for Evaluating the Transfer Related to Inflation: The Case of French Households," Review of Income and Wealth, Blackwell Publishing, vol. 24(4), pages 391-414, December.
  3. Gabrielle Antille & Emilio Fontela, 2003. "The Terms of Trade and the International Transfers of Productivity Gains," Economic Systems Research, Taylor and Francis Journals, vol. 15(1), pages 3-19, March. [Downloadable!] (restricted)
  4. Devicienti, Francesco & Maida, Agata & Pacelli, Lia, 2008. "The resurrection of the Italian wage curve," Economics Letters, Elsevier, vol. 98(3), pages 335-341, March. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.


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