Incentives for accuracy in GDP estimates

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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]
  1. Deaton, Angus; Friedman, Jed; Alatas, Vivi (May 2004). "Purchasing power parity exchange rates from household survey data: India and Indonesia" (PDF). Retrieved October 27, 2017.