Macroeconomics
Computing Additive Chained Volume Measures of GDP Subaggregates
January 1, 2010
Jesus C. Dumagan
Abstract
This paper derives formulas for additive chained volume measures (CVMs) of GDP subaggregates depending on the underlying GDP quantity index. In turn, this paper explains why the formulas used in current practice yield non-additive CVMs. This papers additive formulas have significant practical implications given that non-additivity prevails in all countries that have adopted the CVM framework for GDP and considering that more countries will be adopting this framework.
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