Does deflation method matter for productivity measures?

TitleDoes deflation method matter for productivity measures?
Publication TypeWorking Paper
Year of Publication2009
AuthorsGarau, G, Lecca, P, Schirru, L
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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