Article in Journal
Previous year price basis: Aggregation and linked difference
Wolfgang Nierhaus
ifo Institut für Wirtschaftsforschung, München, 2007
ifo Schnelldienst, 2007, 60, Nr. 06, 29-33
ifo Institut für Wirtschaftsforschung, München, 2007
ifo Schnelldienst, 2007, 60, Nr. 06, 29-33
In spring 2005 the Federal Statistical Office readjusted its calculation of real GDP from a fixed price basis to a previous year price basis. A central problem is the non-additivity of linked volume values, that is, the sum of linked partial aggregates deviates, as a rule, from the value of the linked total aggregate. In general, a linked difference (residue) arises. This article examines the calculation procedure and its associated problems.
JEL Classification: C820,E100
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ifo Schnelldienst 06/2007
ifo Institut für Wirtschaftsforschung, München, 2007