Advanced Search
MyIDEAS: Login

Is Newer Better? Penn World Table Revisions and the Growth Literature

Contents:

Author Info

  • William Larson

    (George Washington University)

  • Chris Papageorgiou

    (IMF)

  • Arvind Subramania

    (Peterson Institute and John Hopkins)

  • Simon Johnson

    (MIT)

Abstract

Versions 6.1 and 6.2 of Penn World Tables (PWT) have essentially the same methodology and the same underlying data, but report significantly different growth numbers. It is not the case that 6.2 is better or worse than 6.1; it is inherent in the PWT approach that some data will vary a great deal across versions and there is no way to determine which of the existing versions is “best”. We examine 13 leading studies of growth for “Table Invariant” results that are robust across different versions of PWT. Table Invariant results are common in studies examining cross-sectional or very long run data; in contrast, results based on higher frequency data are less likely to be robust in this sense, and annual data are particularly problematic. This lack of robustness can be attributed in part to poor data quality in lower income countries, which has been flagged in the Tables’ own health warnings. The lack of robustness is also due to the PWT’s methodology for constructing and compiling the data. This methodology renders data for countries with relatively small total GDP and data distant from the current benchmark year especially variable. We propose an alternative way to use PWT data that might be less prone to some of these issues.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.economicdynamics.org/meetpapers/2009/paper_858.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 858.

as in new window
Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:red:sed009:858

Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Fax: 1-314-444-8731
Email:
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Acemoglu, Daron & Johnson, Simon & Robinson, James A & Thaicharoen, Yunyong, 2002. "Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth," CEPR Discussion Papers 3575, C.E.P.R. Discussion Papers.
  2. Angus Deaton & Alan Heston, 2008. "Understanding PPPs and PPP-based national accounts," Working Papers 1120, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  3. Matthijs van Veelen, 2002. "An Impossibility Theorem Concerning Multilateral International Comparison of Volumes," Econometrica, Econometric Society, vol. 70(1), pages 369-375, January.
  4. Rao, D S Prasada & Selvanathan, E A, 1992. "Computation of Standard Errors for Geary-Khamis Parities and International Prices: A Stochastic Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(1), pages 109-15, January.
  5. Heston, Alan & Summers, Robert, 1996. "International Price and Quantity Comparisons: Potentials and Pitfalls," American Economic Review, American Economic Association, vol. 86(2), pages 20-24, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Bhalotra, Sonia & Umana-Aponte, Marcela, 2012. "Women.s Labour Supply and Household Insurance in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Yin-Wong Cheung & Eiji Fujii, 2012. "The Penn Effect within a Country - Evidence from Japan," CESifo Working Paper Series 3955, CESifo Group Munich.
  3. Vernon Henderson & Adam Storeygard & David N. Weil, 2009. "Measuring Economic Growth from Outer Space," Working Papers 2009-8, Brown University, Department of Economics.
  4. Yin-Wong Cheung & Eiji Fujii, 2011. "Exchange Rate Misalingment Estimates - Sources of Differences," CESifo Working Paper Series 3555, CESifo Group Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:red:sed009:858. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.