Does the Version of the Penn World Tables Matter? An Analysis of the Relationship between Growth and Volatility

28 Pages Posted: 20 Jan 2010

See all articles by Natalia Ponomareva

Natalia Ponomareva

Macquarie University - Division of Economic and Financial Studies; Macquarie University, Macquarie Business School

Hajime Katayama

Waseda University - School of Commerce

Date Written: January 2010

Abstract

The PennWorld Tables (PWT) are an important data source for cross-country comparisons in economics. The PWT have undergone several revisions over time. This paper documents how countries’ output growth rates change across four publicly available versions of the PWT. We show that for some countries the magnitude of the differences is significant and/or the sign of the growth rates changes across versions. Using as an example Ramey and Ramey (1995), who found growth volatility has a significant negative effect on growth, we demonstrate that conclusions based on one version of the PWT may not hold under another version.

Est-ce que la version qu’on utilise des tableaux mondiaux de Penn porte `a cons´equence? Une analyse de la relation entre croissance et volatilit´e. Les tableaux mondiaux de Penn (PennWorld Tables ou PWT) sont une source importante de donn´ees comparatives entre pays dans le monde ´economique. Les PWT ont subi plusieurs r´evisions dans le temps. Ce m´emoire montre d’abord comment les taux de croissance du produit des pays changent selon les quatre versions des PWT disponibles au public. On montre que pour certains pays la taille des diff´erences est significative et que mˆeme le signe de ces taux change d’une version `a l’autre. Utilisant comme exemple Ramey et Ramey (1995) qui ont montr´e que la volatilit´e de la croissance a un effet n´egatif sur la croissance, les auteurs montrent que les conclusions fond´ees sur une version des PWT peuvent ne pas ˆetre fond´ees dans une autre version.

Suggested Citation

Ponomareva, Natalia and Katayama, Hajime, Does the Version of the Penn World Tables Matter? An Analysis of the Relationship between Growth and Volatility (January 2010). Canadian Journal of Economics/Revue canadienne d'économique, Vol. 43, Issue 1, pp. 152-179, February / fevrier 2010, Available at SSRN: https://ssrn.com/abstract=1539181 or http://dx.doi.org/10.1111/j.1540-5982.2009.01567.x

Natalia Ponomareva (Contact Author)

Macquarie University - Division of Economic and Financial Studies ( email )

United States

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Hajime Katayama

Waseda University - School of Commerce ( email )

School of Commerce, Waseda University
1-6-1 Nishi-Waseda Shinjyuku-ku
Tokyo, Tokyo 169 - 8050
Japan

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