TY  - JOUR
AU  - Feenstra,Robert C.
AU  - Heston,Alan
AU  - Timmer,Marcel P.
AU  - Deng,Haiyan
TI  - Estimating Real Production and Expenditures Across Nations: A Proposal for Improving the Penn World Tables
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10866
PY  - 2004
Y2  - November 2004
UR  - http://www.nber.org/papers/w10866
L1  - http://www.nber.org/papers/w10866.pdf
N1  - Author contact info:
Robert C. Feenstra
Department of Economics
University of California, Davis
One Shields Avenue
Davis, CA  95616
Tel: 530/752-7022
Fax: 530/752-9382
E-Mail: rcfeenstra@ucdavis.edu

Alan Heston
433 12th St. SE
Washington DC 20003
Tel: 202 543 6191
E-Mail: aheston@econ.upenn.edu

Haiyan Deng
The Conference Board
845 Third Avenue
New York, NY  10022
E-Mail: haiyan.deng@conference-board.org
AB  - 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.
ER  -