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Microeconomic Approaches to the Theory of International Comparisons

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  • W.E. Diewert

Abstract

The paper considers alternative approaches to providing consistent multilateral indexes of real output, real input, real consumption or productivity across many regions, countries or industries at one point in time. The recommended approaches are based on aggregating up various bilateral indexes which in turn are based on the economic theory of index numbers, either in the producer or consumer theory context. In order to distinguish between various competing multilateral approaches, an axiomatic or test approach to multilateral comparisons is developed. This test approach indicates that the Geary-Khamis and Van Yzeren approaches to multilateral output comparisons are dominated by the (new) own share and the Elteto-Koves-Szulc methods.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0053.

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Date of creation: Dec 1985
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Handle: RePEc:nbr:nberte:0053

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Cited by:
  1. W. Erwin Diewert, 1995. "Price and Volume Measures in the System of National Accounts," NBER Working Papers 5103, National Bureau of Economic Research, Inc.
  2. Celso Nunes, 2008. "Poverty Measurement: The Development of Different Approaches and Its Techniques," Working Papers 93, ECINEQ, Society for the Study of Economic Inequality.
  3. Ruoen, Ren & Chen Kai, 1995. "China's GDP in U.S. dollars based on purchasing power parity," Policy Research Working Paper Series 1415, The World Bank.

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