Konferenzbeitrag

Missing growth measurement in Germany

Using detailed establishment-level micro data, this paper analyzes the quantitative implications of the missing-growth hypothesis by Aghion, Bergeaud, Boppart, Klenow, and Li (2019) for Germany. This hypothesis states that actual growth rates of real output are systematically understated by official estimates, such that a part of real growth is missing in the published data. The underlying effect rests on overstated inflation estimates due to imputed prices for disappearing goods and services varieties, which is indirectly measured by plant entry and exit dynamics. Using different market share proxies our main results regarding understated real output growth lie in the range of 0:39 to 0:54 percentage points per year on average for the benchmark sample 1998-2016. These are quite closely in line with existing findings for France, the USA, and Japan (in different periods). We provide additional robustness analysis and discuss limitations of the approach.

Language
Englisch

Bibliographic citation
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics

Classification
Wirtschaft
Price Level; Inflation; Deflation
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Subject
creative destruction
price imputation
inflation measurement

Event
Geistige Schöpfung
(who)
Schmidt, Vanessa
Schreiber, Sven
Event
Veröffentlichung
(who)
ZBW - Leibniz Information Centre for Economics
(where)
Kiel, Hamburg
(when)
2020

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Schmidt, Vanessa
  • Schreiber, Sven
  • ZBW - Leibniz Information Centre for Economics

Time of origin

  • 2020

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