On measuring average growth rate

Galip Altinay ()

Applied Economics, 2004, vol. 36, issue 6, 637-644

Abstract: This study investigates the difference in average growth rates obtained from two commonly used methods. It is analytically shown that the difference lies on the dichotomy of constant and time-varying growth that can be converted to the dichotomy of trend stationary (TS) and difference stationary (DS) processes. For TS processes the two methods would yield the same results whereas they differ in case of integrated processes. It is also proven that the OLS residuals of a log-linear trend model of an integrated series will be always a random walk, in which case the differenced model that yields the same result as geometric mean is appropriate. The findings are illustrated on the real GDPs of OECD countries.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0003684042000217670 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:36:y:2004:i:6:p:637-644

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/0003684042000217670

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().