penn-world-table.pptx

The Next Generation of the Penn World TableSummary?PWT is a database with information on relative levels of e, output, inputs and productivity.?Based on ICP and converts GDP at national prices to mom currency- the us dollars. ?Making parable across countries and over time.?C G I X M LS TFP?Challenge is relative price levelSummary?Version 8 of expands in three respects?First, in addition parisons of living standards ponents of real GDP on the expenditure side(GDPe), we provide a measure of productive capacity, called real GDP on the output side(GDPo).?Second, growth rates are benchmarked to multiple years of cross-country price data so they are less sensitive to new benchmark data.?Third, data on capital stocks and productivity are (re)introducedSummary?Balassa-Samuelson effect: more technologically developed countries have higher prices for nontraded goods?It is highly misleading to measure “real” GDP.?nominal exchange rates just measure trade Guided Tour of PWT8?What is “real” GDP??GDP evaluated at constant prices over time?GDP that is evaluated at constant prices across countries. hold all prices for goods and services constant across countriesA Guided Tour of PWT8?ICP ?parison Program?GDPe ?Need relative price level for domestic absorption from ICP?GDPo ?Include price of export and import?there is no cross-country survey that collects prices for traded goods parable quality across countries,as the ICP does for consumption and investment products?quality-adjusted prices across countries, as in Feenstra and Romalis (2014).A Guided Tour of PWT8?CGDPo or CGDPe?real GDP using prices that are constant across countries but depend on the current year. ?Are best-suited parisons across countries in a particular year.?RGDPo or RGDPe?real GDP using prices that are constant across countries and are also constant over time. (Anti)?Are well-suited parisons across countries and over time.