Cover Staff Discussion Notes
Buy Book in Print
Measure up: A Better Way to Calculate GDP
Author:
Mr. Thomas F Alexander
Search for other papers by Mr. Thomas F Alexander in
Current site
Google Scholar Close
,
Ms. Claudia H Dziobek
Search for other papers by Ms. Claudia H Dziobek in
Current site
Google Scholar Close
,
Mr. Marco Marini
Search for other papers by Mr. Marco Marini in
Current site
Google Scholar Close
,
Eric Metreau null

Search for other papers by Eric Metreau in
Current site
Google Scholar Close
, and
Mr. Michael Stanger
Search for other papers by Mr. Michael Stanger in
Current site
Google Scholar Close
Series:
Staff Discussion Notes
Volume/Issue:
Volume 2017: Issue 002
Language:
English
Publication Date:
02 Feb 2017
DOI:
https://doi.org/10.5089/9781475572605.006
ISBN:
9781475572605
ISSN:
2617-6750
Pages:
19
Keywords:
SDN; single deflation; value; single-deflation estimate; GDP at constant prices; GDP deflator; G20 Data Gaps Initiative; single and double deflation; China; India; deflation measure; single-deflation method; output price; Deflation; Price indexes; Consumption; Commodity price fluctuations; Global
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
Download PDF (1.4 MB) Download Epub
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.
  • Collapse
  • Expand
Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund