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Previous-year price basis: Calculating rules for aggregation

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  • Wolfgang Nierhaus

Abstract

This spring, the Federal Statistical Office readjusted the calculation of real GDP from a fixed price basis to the previous year price basis. A central problem of the new volume calculation in the non-additivity of the results, i.e. the sum of the linked partial aggregates deviates, as a rule, from the value of the linked overall aggregate. For the aggregation (or disaggregation) of volumes, new methods must therefore be found. This article presents various solutions.

Suggested Citation

  • Wolfgang Nierhaus, 2005. "Previous-year price basis: Calculating rules for aggregation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(22), pages 12-16, November.
    • Handle: RePEc:ces:ifosdt:v:58:y:2005:i:22:p:12-16
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    References listed on IDEAS

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    1. Wolfgang Nierhaus, 2004. "Zur Einführung der Vorjahrespreisbasis in der deutschen Statistik: Besonderheiten der Quartalsrechnung," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(15), pages 14-21, August.
    2. Wolfgang Nierhaus, 2005. "The introduction of the previous-year price basis in German National Accounts: Consequences for business-cycle analysis," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(05), pages 19-27, March.
    3. Tödter, Karl-Heinz, 2005. "Umstellung der deutschen VGR auf Vorjahrespreisbasis," Discussion Paper Series 1: Economic Studies 2005,31, Deutsche Bundesbank.
    4. Wolfgang Nierhaus, 2005. "Previous year price basis and chain linking in the National Accounts: the most important features of the new volume calculation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(15), pages 29-35, August.
    5. repec:ces:ifosdt:v::y:2004:i::p:14-21 is not listed on IDEAS
    6. Wolfgang Nierhaus, 2004. "Economic growth in the system of national accounts: the introduction of the previous-year price base in the German statistics," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(05), pages 28-34, March.
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    Citations

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    Cited by:

    1. Flor Michael, 2014. "Post reunification economic fluctuations in Germany: a real business cycle interpretation," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 4, pages 5-17.
    2. Quaas, Georg, 2009. "Die Umsetzung der Annual-Overlap-Methode in ökonometrischen Modellen – eine Analyse der programmtechnischen Möglichkeiten von E-Views [The implementation of the annual-overlap method in econometric," MPRA Paper 19435, University Library of Munich, Germany.
    3. Timo Wollmershäuser, 2016. "Forecasting Revisions of Stock Changes Using Ifo Inventory Assessments," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(07), pages 26-32, April.
    4. Isabel Hanisch & Elisabeth Wieland & Timo Wollmershäuser, 2015. "The Development of German Investment Activity in a European Comparison – the Role of Price and Volume Effects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(16), pages 39-50, August.
    5. Michael Flor, 2014. "Post Reunification Economic Fluctuations in Germany: A Real Business Cycle Interpretation," Working Papers 146, Bavarian Graduate Program in Economics (BGPE).
    6. Wolfgang Nierhaus, 2008. "Price-adjusted GDP and the practice followed by the Institutes in the Joint Economic Analysis," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(09), pages 15-18, May.
    7. Wolfgang Nierhaus, 2007. "Previous year price basis: Aggregation and linked difference," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(06), pages 29-33, March.
    8. Quaas, Georg, 2009. "Realgrößen und Preisindizes im alten und im neuen VGR-System [Macro-economic aggregates in real terms and price indices in the old and the new system of national accounts]," MPRA Paper 22316, University Library of Munich, Germany, revised 25 Apr 2010.
    9. Wolfgang Nierhaus & Timo Wollmershäuser, 2016. "ifo Konjunkturumfragen und Konjunkturanalyse: Band II," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 72.
    10. Quaas, Georg, 2019. "Ferndiagnose des RWI-Konjunkturmodells [Remote diagnosis of the RWI business cycle model]," MPRA Paper 95292, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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