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Does the Digital Economy Distort the Volume-Price Split of GDP? The French Experience
[L’économie numérique fausse‑t‑elle le partage volume‑prix du PIB ? L’expérience française]

Author

Listed:
  • Lorraine Aeberhardt

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Florian Hatier

    (DSED - DGEF - Département des statistiques, des études et de la documentation (DSED), Direction générale des étrangers en France (DGEF))

  • Marie Leclair

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Benoît Pentinat

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Jean-Denis Zafar

    (AXA France)

Abstract

The slowdown in economic growth over the past two decades is in contrast with the digitisation of the economy. As a result, certain economists are wondering about a possible problem in measuring GDP and, in particular, its volume‑price split. The article reviews the meth‑ ods used by statisticians, with a focus on France, to distinguish changes in price from changes in volume, with a particular attention to the particularities and difficulties linked with the digital economy: communication goods and services, the existence of forms of digital sales, the emergence of new digital services and the development of free services. While the methods put in place deserve to be questioned, a simulation shows that an error in the measurement of the prices of information and communication products is not likely to explain the slowdown in economic growth.

Suggested Citation

  • Lorraine Aeberhardt & Florian Hatier & Marie Leclair & Benoît Pentinat & Jean-Denis Zafar, 2020. "Does the Digital Economy Distort the Volume-Price Split of GDP? The French Experience [L’économie numérique fausse‑t‑elle le partage volume‑prix du PIB ? L’expérience française]," Post-Print hal-05290504, HAL.
    • Handle: RePEc:hal:journl:hal-05290504
    DOI: 10.24187/ecostat.2020.517t.2027
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05290504v1
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    References listed on IDEAS

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    1. David M. Byrne & John G. Fernald & Marshall B. Reinsdorf, 2016. "Does the United States Have a Productivity Slowdown or a Measurement Problem?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(1 (Spring), pages 109-182.
    2. Martin Feldstein, 2017. "Underestimating the Real Growth of GDP, Personal Income, and Productivity," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 145-164, Spring.
    3. Marshall Reinsdorf, 1993. "The Effect of Outlet Price Differentials on the US Consumer Price Index," NBER Chapters, in: Price Measurements and Their Uses, pages 227-258, National Bureau of Economic Research, Inc.
    4. Dave Byrne & Carol Corrado, 2017. "ICT Prices and ICT Services: What Do They Tell Us About Productivity and Technology," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 150-181, Fall.
    5. David M. Byrne & Carol Corrado, 2017. "ICT Services and their Prices: What do they tell us about Productivity and Technology?," Finance and Economics Discussion Series 2017-015, Board of Governors of the Federal Reserve System (U.S.).
    6. Nadim Ahmad & Paul Schreyer, 2016. "Measuring GDP in a Digitalised Economy," OECD Statistics Working Papers 2016/7, OECD Publishing.
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