Measure up : A Better Way to Calculate GDP /

To derive real GDP, the System of National Accounts 2008 (2008 SNA) recommends a technique called double deflation. Some countries use single deflation techniques, which fail to capture important relative price changes and introduce estimation errors in official GDP growth. We simulate the effects o...

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Bibliographic Details
Main Author: Alexander, Thomas
Other Authors: Dziobek, Claudia, Marini, Marco, Metreau, Eric
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2017.
Series:Staff Discussion Notes; Staff Discussion Notes ; No. 2017/002
Online Access:Full text available on IMF
Description
Summary:To derive real GDP, the System of National Accounts 2008 (2008 SNA) recommends a technique called double deflation. Some countries use single deflation techniques, which fail to capture important relative price changes and introduce estimation errors in official GDP growth. We simulate the effects of single deflation to the GDP data of eight countries that use double deflation. We find that errors due to single deflation can be significant, but their magnitude and direction are not systematic over time and across countries. We conclude that countries still using single deflation should move to double deflation.
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<strong>On-Campus Access:</strong> No User ID or Password Required
Physical Description:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:2617-6750
Access:Electronic access restricted to authorized BRAC University faculty, staff and students