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Computing Additive Chained Volume Measures of GDP Subaggregates

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  • Dumagan, Jesus C.

Abstract

This paper derives formulas for additive "chained volume measures" (CVMs) of GDP subaggregates depending on the underlying GDP quantity index. In turn, this paper explains why the formulas used in current practice yield nonadditive CVMs. This paper's additive formulas have significant practical implications given that nonadditivity prevails in all countries that have adopted the CVM framework for GDP and considering that more countries will be adopting this framework.

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Bibliographic Info

Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2010-16.

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Length: 24
Date of creation: 2010
Date of revision:
Handle: RePEc:phd:dpaper:dp_2010-16

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Keywords: additivity; chained volume measure; chained index;

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References

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  1. Joe Robjohns, 2007. "Methods explained: Contributions to growth rates under annual chain-linking," Economic and Labour Market Review, Palgrave Macmillan, vol. 1(6), pages 53-56, June.
  2. Dumagan, Jesus C., 2008. "Avoiding Anomalies of GDP in Constant Prices by Conversion to Chained Prices: Accentuating Shifts in Philippine Economic Transformation," Discussion Papers, Philippine Institute for Development Studies DP 2008-24, Philippine Institute for Development Studies.
  3. Dumagan, Jesus C., 2002. "Comparing the superlative Tornqvist and Fisher ideal indexes," Economics Letters, Elsevier, Elsevier, vol. 76(2), pages 251-258, July.
  4. Whelan, Karl, 2002. "A Guide to U.S. Chain Aggregated NIPA Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(2), pages 217-33, June.
  5. Jesus C. Dumagan, 2008. "Implementing US GDP in Chained Prices for Cross-country GDP Growth and Sectoral Comparisons : Application to Selected ASEAN Countries," Macroeconomics Working Papers 22631, East Asian Bureau of Economic Research.
  6. Balk, Bert M., 2004. "Decompositions of Fisher indexes," Economics Letters, Elsevier, Elsevier, vol. 82(1), pages 107-113, January.
  7. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, Econometric Society, vol. 46(4), pages 883-900, July.
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Cited by:
  1. Dumagan, Jesus C., 2011. "Deriving Weights for Additivity of Chained Volume Measures in the National Accounts," Discussion Papers, Philippine Institute for Development Studies DP 2011-08, Philippine Institute for Development Studies.
  2. Dumagan, Jesus C., 2011. "Implementing Weights for Additivity of Chained Volume Measures in the National Accounts," Discussion Papers, Philippine Institute for Development Studies DP 2011-09, Philippine Institute for Development Studies.

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