Evidence that Capital Formation is Over-Estimated in ICP 2011

Theodore Breton ()

No 13332, Documentos de Trabajo de Valor Público from Universidad EAFIT

Abstract: Using the ICP 2011’s cross-country data on input prices and project cost shares, I show that the construction prices in ICP 2011 are substantially underestimated in low and middle income countries. As a consequence, the PPP-adjusted construction in these countries is overestimated on average by about 100% and gross fixed capital formation as a share of GDP is overestimated by 25-30%. I also examine the ICP 2005 construction prices and show that there are similar problems with the ICP 2005 data.

Keywords: ICP 2011; ICP 2005, construction prices; PPP; construction data; capital data (search for similar items in EconPapers)
JEL-codes: E30 O47 (search for similar items in EconPapers)
Pages: 13
Date: 2015-07-22
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10784/5508

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:col:000122:013332

Access Statistics for this paper

More papers in Documentos de Trabajo de Valor Público from Universidad EAFIT Contact information at EDIRC.
Bibliographic data for series maintained by Valor Público EAFIT - Centro de estudios e incidencia ().