Does deflation method matter for productivity measures?

TitleDoes deflation method matter for productivity measures?
Publication TypeWorking Paper
Year of Publication2009
AuthorsG. Garau, P. Lecca, L. Schirru
Keywordsinput output, national account, prices index, total factor productivity

In this paper, we argue against the use the double deflation method to produce an equilibrating system of account at a constant price. In fact, by relaxing such a condition, by means of the single deflation method, we obtain a measure of purchasing power transfer that can be decomposed in productivity and market distortion. Results are presented for the evolution of the Italian economy for the periods 1995-2002

Citation Key1268
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