Output Growth and Inflation across Space and Time

42 Pages Posted: 3 Mar 2015

See all articles by W. Erwin Diewert

W. Erwin Diewert

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Kevin J. Fox

UNSW Australia Business School, School of Economics

Date Written: February 22, 2015

Abstract

It is common for comparisons to be made of output growth and inflation across groups of countries, yet such comparisons can result in inconsistencies. We address two problems: (i) how to measure aggregate real output and inflation for groups of countries and (ii) how to construct measures of real GDP for a group of countries where the country measures of real GDP are consistent across time and space. A method is proposed for harmonizing conflicting estimates of OECD member-country real GDP, ensuring consistency over space and overall group consistency over time. A new measure of OECD inflation is also proposed.

Keywords: Purchasing Power Parities, PPPs, ICP, OECD country statistics, inflation, price and volume indexes, Fisher indexes, country competitiveness

JEL Classification: C43, C82, E01

Suggested Citation

Diewert, W. Erwin and Fox, Kevin J., Output Growth and Inflation across Space and Time (February 22, 2015). UNSW Business School Research Paper No. 2015-04. Available at SSRN: https://ssrn.com/abstract=2572774 or http://dx.doi.org/10.2139/ssrn.2572774

W. Erwin Diewert

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada
604-822-2544 (Phone)
604-822-5915 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Kevin J. Fox (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia
(02)9385-3320 (Phone)
(02)9313-6337 (Fax)

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