Previous Year’s Prices: Aggregation and Growth Contributions

In its revision of the national accounts system in 2005, the German Federal Statistical Office switched its calculation of real gross domestic product from the fixed price basis to the previous year’s price basis. A central problem of this volume measurement is the non-additivity of the results. Special paths must therefore be taken to determine aggregates and growth contributions. This article recapitulates the key calculation rules and looks at methodical further developments.