Illuminating Economic Growth
IMF Working Papers, April 9, 2019
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- Illuminating Economic Growth
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Bibliographic details
- Authors: Yingyao Hu, Jiaxiong Yao
- Published: April 9, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498302944.001
Overview and objectives
- Authors: Yingyao Hu, Jiaxiong Yao
- Publication date: April 9, 2019
- Type: IMF Working Papers, Working Paper No. 2019/077, Issue: 077, Volume: 2019, Pages: 57
- DOI: https://doi.org/10.5089/9781498302944.001
- ISBN: 9781498302944
- ISSN: 1018-5941
- Primary objective: To illuminate the uncertainty in official GDP per capita measures using auxiliary data (satellite-recorded nighttime lights) and a statistical framework that allows measurement errors to depend on statistical capacity and for the lights–GDP relationship to be nonlinear and geographically varying.
Methodology and analytical framework
- Uses satellite-recorded nighttime lights as an additional measurement of true GDP per capita.
- Applies recently developed results for measurement error models to:
- Identify and estimate the nonlinear relationship between nighttime lights and true GDP per capita.
- Identify and estimate the nonparametric distribution of errors in official GDP per capita data.
- Combines inputs: nighttime lights, official national accounts data, statistical capacity, and geographic locations to construct alternative GDP per capita measures that aim to be more precise and robust.
Key findings
- GDP per capita measures are less precise for middle and low income countries.
- Nighttime lights can play a bigger role in improving GDP per capita measures for middle and low income countries.
- The error in official GDP per capita may depend on the country’s statistical capacity.
- The relationship between nighttime lights and true GDP per capita can be nonlinear and vary with geographic location.
Subjects and keywords
- Subject: Economic sectors, GDP measurement, Income, Informal economy, National accounts, Personal income
- Keywords: economic activity, GDP measurement, GDP per capita, Global, Income, Informal economy, light-predicted GDP, low income, measurement error, nighttime light, Nighttime lights, real GDP measure, real gross domestic product, WP
Publication metadata (exact)
- Publication title: Illuminating Economic Growth
- Series: Working Paper No. 2019/077
- Stock No: WPIEA2019077
- Format note: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate.
Source: IMF Working Paper "Illuminating Economic Growth" by Yingyao Hu and Jiaxiong Yao, April 9, 2019; DOI: https://doi.org/10.5089/9781498302944.001
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- Working Paper