IDEAS home Printed from https://ideas.repec.org/p/qld/uq2004/552.html
   My bibliography  Save this paper

On Measuring Regional or Global Growth and Inflation

Author

Listed:

Abstract

In a paper contributed to the Ottawa Group, Rao and Balk (2013) presented an overview of concepts used in the field of international comparison, such as Nominal GDP, Real GDP, and Price Level Index. The present paper continues by providing a simple, symmetric formula for the calculation of regional or global growth and inflation. What distinguishes our proposal from currently used methods (at international organisations such as Eurostat, OECD, and The World Bank) is its top-down approach ensuring consistency between value, quantity, and price developments. The role played by exchange rates and purchasing power parities also becomes clear. We consider the aggregation properties of the method with respect to two dimensions, namely the grouping of countries, and the components of GDP (private household consumption, investment, government consumption, exports, and imports). An example, based on data recently released by the International Comparison Program, illustrates our proposal.

Suggested Citation

  • D. S. Prasada Rao & Alicia N. Rambaldi & Bert M. Balk, 2015. "On Measuring Regional or Global Growth and Inflation," Discussion Papers Series 552, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:552
    as

    Download full text from publisher

    File URL: https://economics.uq.edu.au/files/46440/552.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ulrich Kohli & Jean-Marc Natal, 2014. "The real exchange rate and the structure of aggregate production," Journal of Productivity Analysis, Springer, vol. 42(1), pages 1-13, August.
    2. World Bank, 2008. "Global Purchasing Power Parities and Real Expenditures : 2005 International Comparison Program," World Bank Publications - Books, The World Bank Group, number 21558, April.
    3. Balk,Bert M., 2012. "Price and Quantity Index Numbers," Cambridge Books, Cambridge University Press, number 9781107404960, June.
    4. World Bank, 2011. "World Bank for Results 2011," World Bank Publications - Books, The World Bank Group, number 15792, April.
    5. Bert M. Balk, 2010. "An Assumption‐Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
    6. , & Diewert, Erwin, 2014. "Alternative Measures of OECD Output Growth and Inflation," Economics working papers erwin_diewert-2014-1, Vancouver School of Economics, revised 20 Feb 2014.
    7. Dale W. Jorgenson & Paul Schreyer, 2013. "Industry-Level Productivity Measurement And The 2008 System Of National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 185-211, June.
    8. Asian Development Bank (ADB), 2014. "Purchasing Power Parities and Real Expenditures," ADB Reports RPT146710-2, Asian Development Bank (ADB), revised 19 Aug 2014.
    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


    Cited by:

    1. Kim, Won Joong & Ko, Juyoung & Kwon, Won Soon & Piao, Chunyan, 2025. "Time-varying sources of fluctuations in global inflation," Economic Modelling, Elsevier, vol. 143(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balk, Bert M. & Rambaldi, Alicia N. & Rao, D. S. Prasada, 2022. "Macro-Economic Measures For A Globalized World: Global Growth And Inflation," Macroeconomic Dynamics, Cambridge University Press, vol. 26(2), pages 314-360, March.
    2. Robert Inklaar & D. S. Prasada Rao, 2017. "Cross-Country Income Levels over Time: Did the Developing World Suddenly Become Much Richer?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 265-290, January.
    3. Majumder,Amita & Ray,Ranjan & Santra,Sattwik, 2015. "Preferences, purchasing power parity, and inequality : analytical framework, propositions, and empirical evidence," Policy Research Working Paper Series 7395, The World Bank.
    4. Amita Majumder & Ranjan Ray & Kompal Sinha, 2014. "A Unified Framework for the Estimation of Intra and Inter Country Food Purchasing Power Parities with Application to Cross Country Comparisons of Food Expenditure: India, Indonesia and Vietnam," Monash Economics Working Papers 31-14, Monash University, Department of Economics.
    5. Bert M. Balk, 2015. "Measuring and relating aggregate and subaggregate total factor productivity change without neoclassical assumptions," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 69(1), pages 21-48, February.
    6. Axenciuc, Victor & Georgescu, George, 2017. "Gross Domestic Product – National Income of Romania 1862 – 2010. Secular statistical series and methodological foundations," MPRA Paper 84614, University Library of Munich, Germany.
    7. Georgescu, George, 2016. "The Gross Domestic Product. History, relevance and limitations in its interpretation," MPRA Paper 73644, University Library of Munich, Germany.
    8. Rati Ram, 2016. "PPP GDP Per Capita for Countries of the World: A Comparison of the New ICP Results with World Bank Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1057-1066, July.
    9. Angus Deaton & Bettina Aten, 2017. "Trying to Understand the PPPs in ICP 2011: Why Are the Results So Different?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 243-264, January.
    10. Jorgenson, Dale W. & Vu, Khuong M., 2016. "The outlook for emerging economies," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 670-682.
    11. Robert Inklaar & Marcel P. Timmer, 2014. "The Relative Price of Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 727-746, December.
    12. Brooks, Douglas H. & Joshi, Kaushal & McArthur, John W. & Rhee, Changyong & Wan, Guanghua, 2014. "A ZEN approach to post-2015 development goals for Asia and the Pacific," Ecological Economics, Elsevier, vol. 107(C), pages 392-401.
    13. Ravallion, Martin, 2018. "An exploration of the changes in the international comparison program’s global economic landscape," World Development, Elsevier, vol. 105(C), pages 201-216.
    14. Kumar Gaurav & Nalin Bharti, 2018. "India–Japan CEPA," Foreign Trade Review, , vol. 53(3), pages 189-203, August.
    15. Martin Ravallion, 2016. "Toward better global poverty measures," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 227-248, June.
    16. Amita Majumder & Ranjan Ray, 2015. "Estimates of Spatial Prices in India and their Sensitivity to Alternative Estimation Methods and Choice of Items," Monash Economics Working Papers 11-15, Monash University, Department of Economics.
    17. Ball, V.E. & Färe, R. & Grosskopf, S. & Margaritis, D., 2015. "The role of energy productivity in U.S. agriculture," Energy Economics, Elsevier, vol. 49(C), pages 460-471.
    18. Maëlenn M Guerchet & Mariella Guerra & Yueqin Huang & Peter Lloyd-Sherlock & Ana Luisa Sosa & Richard Uwakwe & Isaac Acosta & Peter Ezeah & Sara Gallardo & Zhaorui Liu & Rosie Mayston & Veronica Monte, 2018. "A cohort study of the effects of older adult care dependence upon household economic functioning, in Peru, Mexico and China," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.
    19. Meade, Birgit & Muhammad , Andrew, 2017. "The Influence of Income and Prices on Global Dietary Patterns by Country, Age, and Gender," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 10, November.
    20. Georgescu, George, 2016. "Produsul intern brut. Istorie, relevanţă şi limitări în interpretare [The Gross Domestic Product. History, relevance and limitations in its interpretation]," MPRA Paper 72491, University Library of Munich, Germany.

    More about this item

    Keywords

    International comparison; world growth; world inflation; exchange rate; purchasing power parity; index number theory;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:552. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SOE IT (email available below). General contact details of provider: https://edirc.repec.org/data/decuqau.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.