Missing growth measurement in Germany
Sven Schreiber and
Vanessa Schmidt
No 205-2020, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute
Abstract:
Using detailed establishment-level micro data, this paper analyses 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 products, which is indirectly measured by plant entry and exit dynamics. Our benchmark result for the sample 1998-2016 amounts to understated real output growth of 0.54 percentage points per year on average, which is quite closely in line with the earlier findings for the USA (0.54 p.p. 1983-2013) and for France (0.5 p.p. 2004-2015). We provide some robustness analysis and discuss limitations of the approach.
Keywords: creative destruction; price imputation; inflation measurement (search for similar items in EconPapers)
JEL-codes: E31 O47 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2020
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.boeckler.de/pdf/p_imk_wp_205_2020.pdf (application/pdf)
Related works:
Journal Article: Missing growth measurement in Germany (2022) 
Working Paper: Missing growth measurement in Germany (2021) 
Working Paper: Missing growth measurement in Germany (2020) 
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:imk:wpaper:205-2020
Access Statistics for this paper
More papers in IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Nemitz ().