Incentives for accuracy in GDP estimates: Difference between revisions
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'''Incentives for accuracy in GDP estimates''' | '''Incentives for accuracy in GDP estimates''' | ||
{{quotation|Worse still, since the one of the main consumers of PPP numbers are international financial institutions and aid agencies, there are incentives for some countries to overstate their price levels in international units, and thus to understate their GDP in PPP terms. And once a country has established a favorable PPP, it has further incentives not to cooperate with further benchmarks.<ref>{{cite web |url=https://www.princeton.edu/~deaton/downloads/PPP_Exchange_rates_may04_relabeled_mar11.pdf |title=Purchasing power parity exchange rates from household survey data: India and Indonesia |date=May 2004 |first1=Angus |last1=Deaton |first2=Jed |last2=Friedman |first3=Vivi |last3=Alatas |accessdate=October 27, 2017}}</ref>}} | |||
{{quotation|In addition, the [national statistical institutes (NSIs)] of countries participating in Eurostat comparisons are required to supply Eurostat with all the detail necessary to evaluate the quality of the basic information reported for a comparison. Specifically, countries are expected to provide Eurostat with an inventory of their sources and methods which will allow Eurostat to assess whether the procedures used by the NSIs meet minimum quality standards and are comparable across countries. Countries are also expected to prepare a report after each price survey that will enable Eurostat to assess the quality of the price collection and the subsequent validation of the prices collected.<ref>{{cite web |url=http://ec.europa.eu/eurostat/documents/728703/728974/FAQ-PPP.pdf/5a92e63b-1c73-4d15-8acd-f3e5e734cbf2 |title=FAQ about Purchasing Power Parities |date=April 12, 2012 |accessdate=November 11, 2017 |archiveurl=https://web.archive.org/web/20171111022010/http://ec.europa.eu/eurostat/documents/728703/728974/FAQ-PPP.pdf/5a92e63b-1c73-4d15-8acd-f3e5e734cbf2 |archivedate=November 11, 2017 |dead-url=no}}</ref>}} | |||
==See also== | ==See also== | ||
* [[Replication of PPP numbers]] | |||
==External links== | ==External links== | ||
Latest revision as of 20:00, 11 November 2017
Incentives for accuracy in GDP estimates
Worse still, since the one of the main consumers of PPP numbers are international financial institutions and aid agencies, there are incentives for some countries to overstate their price levels in international units, and thus to understate their GDP in PPP terms. And once a country has established a favorable PPP, it has further incentives not to cooperate with further benchmarks.[1]
In addition, the [national statistical institutes (NSIs)] of countries participating in Eurostat comparisons are required to supply Eurostat with all the detail necessary to evaluate the quality of the basic information reported for a comparison. Specifically, countries are expected to provide Eurostat with an inventory of their sources and methods which will allow Eurostat to assess whether the procedures used by the NSIs meet minimum quality standards and are comparable across countries. Countries are also expected to prepare a report after each price survey that will enable Eurostat to assess the quality of the price collection and the subsequent validation of the prices collected.[2]
See also
External links
References
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