NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Estimating Real Production and Expenditures Across Nations: A Proposal for Improving the Penn World Tables

Robert C. Feenstra, Alan Heston, Marcel P. Timmer, Haiyan Deng

NBER Working Paper No. 10866
Issued in November 2004
NBER Program(s):   ITI

In this paper we propose a new approach to international comparisons of real GDP measured from the output-side. The traditional Geary-Khamis system to measure real GDP from the expenditure-side is modified to include differences in the terms of trade between countries. It is shown that this system has a strictly positive solution under mild assumptions. On the basis of a set of domestic final output, import and export prices and values for 14 European countries and the U.S. it is shown that differences between real GDP measured from the expenditure and output-side can be substantial, especially for small open economies.

download in pdf format
   (206 K)

email paper

This paper is available as PDF (206 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10866

Published: Robert C Feenstra & Alan Heston & Marcel P Timmer & Haiyan Deng, 2009. "Estimating Real Production and Expenditures across Nations: A Proposal for Improving the Penn World Tables," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 201-212, October. citation courtesy of

Users who downloaded this paper also downloaded these:
Deaton and Heston w14499 Understanding PPPs and PPP-based national accounts
Feenstra, Inklaar, and Timmer w19255 The Next Generation of the Penn World Table
Johnson, Larson, Papageorgiou, and Subramanian w15455 Is Newer Better? Penn World Table Revisions and Their Impact on Growth Estimates
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us