While economic growth is important for poverty reduction, the rather stellar performance of the Philippines in economic growth has still not translated into reduction of poverty. This is in large part due to issues pertaining to distribution. Inequalities in income, as well as inequities in...

While economic growth is important for poverty reduction, the rather stellar performance of the Philippines in economic growth has still not translated into reduction of poverty. This is in large part due to issues pertaining to distribution. Inequalities in income, as well as inequities in...

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 nonadditive CVMs. This paper's additive formulas have significant practical...

This paper’s framework for GDP in chained prices yields GDP in constant prices as a special case of constant relative prices, i.e., these GDP measures differ only when relative prices change. The framework has a novel additive procedure, counter to the prevailing view that GDP in chained...

Consistent aggregation ensures that real GDP level and growth do not change as the existing GDP components are merely rearranged. Otherwise, level or growth changes are spurious. This paper proposes a framework for consistent aggregation where components are converted to "purchasing power...

In current practice in all countries, subaggregate chained volume measures (CVMs) are not weighted and, thus, not additive. However, weights are necessary because without them, nonadditivity permits the nonsensical result that a subaggregate CVM could exceed the aggregate CVM. This paper derives...

In current practice, subaggregate chained volume measures (CVMs) are neither weighted nor additive. This paper derives and implements "weights" for weighted subaggregate CVMs to be additive (i.e., their sum equals aggregate CVM) because without weights, nonadditivity permits the nonsensical...

Aggregate labor productivity (ALP) growth--i.e., growth of output per unit of labor--may be decomposed into additive contributions due to within-sector productivity growth effect, dynamic structural reallocation effect (Baumol effect), and static structural reallocation effect (Denison effect)...

This paper shows that the decomposition of log-change in aggregate labor productivity (ALP) devised by Balk (2013) based on Sato-Vartia indexes is inexact when applied to gross domestic product (GDP) in chained or in constant prices so that sectoral contributions do not necessarily add up to...