Estimating Real Production and Expenditures Across Nations: A Proposal for Improving the Penn World Tables
AbstractIn this paper we propose a new approach to international comparisons of real GDP measured from the output-side. The traditional Geary-Khamis system to measure real GDP from the expenditure-side is modified to include differences in the terms of trade between countries. It is shown that this system has a strictly positive solution under mild assumptions. On the basis of a set of domestic final output, import and export prices and values for 14 European countries and the U.S. it is shown that differences between real GDP measured from the expenditure and output-side can be substantial, especially for small open economies.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10866.
Date of creation: Nov 2004
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- Robert C. Feenstra & Alan Heston & Marcel P. Timmer & Haiyan Deng, 2009. "Estimating Real Production and Expenditures across Nations: A Proposal for Improving the Penn World Tables," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 201-212, February.
- Feenstra, Robert C. & Heston, Alan & Timmer, Marcel P. & Deng, Haiyan, 2007. "Estimating Real Production and Expenditures Across Nations: A Proposal for Improving the Penn World Tables," GGDC Research Memorandum GD-95, Groningen Growth and Development Centre, University of Groningen.
- Feenstra, Robert C. & Heston, Alan & Timmer, Marcel P. & Deng, Haiyan, 2007. "Estimating real production and expenditures across nations : a proposal for improving the Penn World Tables," Policy Research Working Paper Series 4166, The World Bank.
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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