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: http://www.uq.edu.au/economics/abstract/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. 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.
    3. , & 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International comparison; world growth; world inflation; exchange rate; purchasing power parity; index number theory;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.