Estimating Real Production and Expenditures across Nations: A Proposal for Improving the Penn World Tables
We propose a new approach to the international comparison of real GDP, as measured from the output-side. The traditional Gary-Khamis system, which measures 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 sample of 151 countries in 1996, it is shown that differences between real GDP measured from the expenditure-side and output-side can be substantial, especially for small open economies. We also obtain cross-country measures of "real openness" and the terms of trade. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Volume (Year): 91 (2009)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
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.:
- Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December.
- Daron Acemoglu & Jaume Ventura, 2001.
"The World Income Distribution,"
NBER Working Papers
8083, National Bureau of Economic Research, Inc.
- W. Erwin Diewert, 1999.
"Axiomatic and Economic Approaches to International Comparisons,"
in: International and Interarea Comparisons of Income, Output, and Prices, pages 13-107
National Bureau of Economic Research, Inc.
- W. Erwin Diewert, 1996. "Axiomatic and Economic Approaches to International Comparisons," NBER Working Papers 5559, National Bureau of Economic Research, Inc.
- Yo Chul Choi & David Hummels & Chong Xiang, 2006. "Explaining Import Variety and Quality: The Role of the Income Distribution," NBER Working Papers 12531, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:91:y:2009:i:1:p:201-212. 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: (Kristin Waites)
If references are entirely missing, you can add them using this form.