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]
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

  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. 
  2. "FAQ about Purchasing Power Parities" (PDF). April 12, 2012. Archived (PDF) from the original on November 11, 2017. Retrieved November 11, 2017.