[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hit/hitcei/2018-11.html
   My bibliography  Save this paper

Macro-economic Measures for a Globalised World: Global Growth and Inflation

Author

Listed:
  • Rao, D.S. Prasada
Abstract
In this paper we offer a framework for measuring global growth and inflation built on an index number theory and practice; standard national accounts principles; and the concepts and methods for international macroeconomic comparisons. Our approach provides a sound basis for the estimates of purchasing power parity and exchange-rate based global growth regularly published by IMF, the World Bank and the United Nations. It also rectifies deficiencies in the current procedures used in measuring global inflation. For illustrative purposes, we present our estimates of global growth and inflation using data for 141 countries for the years 2005 and 2011. Contribution of movements in exchange rates and purchasing power parities to global inflation are presented.

Suggested Citation

  • Rao, D.S. Prasada, 2018. "Macro-economic Measures for a Globalised World: Global Growth and Inflation," CEI Working Paper Series 2018-11, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hitcei:2018-11
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/29683/wp2018-11.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. World Bank, 2008. "Global Purchasing Power Parities and Real Expenditures : 2005 International Comparison Program," World Bank Publications - Books, The World Bank Group, number 21558.
    2. Robert Inklaar & Marcel P. Timmer, 2014. "The Relative Price of Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 727-746, December.
    3. Clague, Christopher, 1986. "Determinants of the National Price Level: Some Empirical Results," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 320-323, May.
    4. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-177, March.
    5. Balk,Bert M., 2012. "Price and Quantity Index Numbers," Cambridge Books, Cambridge University Press, number 9781107404960.
    6. Zhang, Qi, 2017. "The Balassa–Samuelson relationship: services, manufacturing and product quality," LSE Research Online Documents on Economics 68705, London School of Economics and Political Science, LSE Library.
    7. Tommaso Monacelli & Luca Sala, 2009. "The International Dimension of Inflation: Evidence from Disaggregated Consumer Price Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(s1), pages 101-120, February.
    8. Robert C. Feenstra & Hong Ma & J. Peter Neary & D.S. Prasada Rao, 2013. "Who Shrunk China? Puzzles in the Measurement of Real GDP," Economic Journal, Royal Economic Society, vol. 123(12), pages 1100-1129, December.
    9. Robert Inklaar & D. S. Prasada Rao, 2017. "Cross-Country Income Levels over Time: Did the Developing World Suddenly Become Much Richer?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 265-290, January.
    10. World Bank, 2011. "World Bank for Results 2011," World Bank Publications - Books, The World Bank Group, number 15792.
    11. Zhang, Qi, 2017. "The Balassa–Samuelson relationship: Services, manufacturing and product quality," Journal of International Economics, Elsevier, vol. 106(C), pages 55-82.
    12. Sato, Kazuo, 1976. "The Ideal Log-Change Index Number," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 223-228, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alan Heston & D.S Prasada Rao, 2021. "Price Levels, Size, Distribution and Growth of the World Economy: Insights from recent International Comparisons of Prices and Real Product," CEPA Working Papers Series WP102021, School of Economics, University of Queensland, Australia.
    2. Robert C. Feenstra & Mingzhi Xu & Alexis Antoniades, 2017. "What is the Price of Tea in China? Towards the Relative Cost of Living in Chinese and U.S. Cities," NBER Working Papers 23161, National Bureau of Economic Research, Inc.
    3. Diewert, W. Erwin & Fox, Kevin J., 2017. "Substitution Bias in Multilateral Methods for CPI Construction using Scanner Data," Microeconomics.ca working papers erwin_diewert-2017-3, Vancouver School of Economics, revised 23 Mar 2017.
    4. Abe, Naohito & Rao, D.S. Prasada, 2022. "Towards a simplified approach to international price comparisons: A case for the Multilateral Walsh Index," RCESR Discussion Paper Series DP22-1, Research Center for Economic and Social Risks, Institute of Economic Research, Hitotsubashi University.
    5. Timothy J. Kehoe & Kim J. Ruhl, 2010. "Why Have Economic Reforms in Mexico Not Generated Growth?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 1005-1027, December.
    6. Abe, Naohito & Rao, D.S. Prasada, 2019. "Multilateral Sato–Vartia index for international comparisons of prices and real expenditures," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    7. Adam Gorajek, 2018. "Econometric Perspectives on Economic Measurement," RBA Research Discussion Papers rdp2018-08, Reserve Bank of Australia.
    8. Gholamreza Hajargasht, 2022. "Reliability of Ideal Indexes," Papers 2210.13684, arXiv.org.
    9. Robert Inklaar & D. S. Prasada Rao, 2017. "Cross-Country Income Levels over Time: Did the Developing World Suddenly Become Much Richer?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 265-290, January.
    10. D. S. Prasada Rao & Alicia N. Rambaldi & Bert M. Balk, 2015. "On Measuring Regional or Global Growth and Inflation," Discussion Papers Series 552, School of Economics, University of Queensland, Australia.
    11. Long Hai Vo, 2023. "Understanding International Price and Consumption Disparities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 443-473, June.
    12. Benkovskis, Konstantins & Wörz, Julia, 2018. "What drives the market share changes? Price versus non-price factors," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 9-29.
    13. Couharde, Cécile & Delatte, Anne-Laure & Grekou, Carl & Mignon, Valérie & Morvillier, Florian, 2020. "Measuring the Balassa-Samuelson effect: A guidance note on the RPROD database," International Economics, Elsevier, vol. 161(C), pages 237-247.
    14. W. Erwin Diewert & Robert C. Feenstra, 2021. "Estimating the Benefits of New Products," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 437-473, National Bureau of Economic Research, Inc.
    15. Robert Z. Lawrence & Lawrence Edward, 2010. "Do Developed and Developing Countries Compete Head to Head in High Tech?," Working Paper Series WP10-8, Peterson Institute for International Economics.
    16. Redding, Stephen J. & Weinstein, David E., 2016. "A unified approach to estimating demand and welfare," LSE Research Online Documents on Economics 67681, London School of Economics and Political Science, LSE Library.
    17. Hajargasht, Gholamreza & Rao, D.S. Prasada, 2019. "Multilateral index number systems for international price comparisons: Properties, existence and uniqueness," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 36-47.
    18. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1-1.
    19. Diewert, W, Erwin & Feenstra, Robert, 2017. "Estimating the Benefits and Costs of New and Disappearing Products," Microeconomics.ca working papers tina_marandola-2017-12, Vancouver School of Economics, revised 19 Dec 2017.
    20. Bouët, Antoine & Estrades, Carmen & Laborde, David, 2011. "Households heterogeneity in a global CGE model: an illustration with the MIRAGE poverty module," Conference papers 332034, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    International comparisons; world growth; world inflation; exchange rate; purchasing power parity; index number theory;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:hitcei:2018-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Reiko Suzuki (email available below). General contact details of provider: https://edirc.repec.org/data/cehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.