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- W2521759969 abstract "Gross domestic product has conventionally been measured using inforUmation on expenditure, income, and output. Since the aim of historians has been to use independent information from different sources, measurement errors will inevitably creep in at the various stages of calculation, resulting in significant discrepancies between the three estimates of GDP. Although the relative magnitude of these discrepancies was significantly lower in the interwar period relative to the period i870-I913, large errors remain. A reconciliation of these measurement errors has substantive implications for a number of aspects of the interwar economy. The conventional approach for dealing with measurement discrepancies between the different estimates of GDP has been to average the information contained in the three series to form the compromise measure. If the measurement errors were assumed to be randomly distributed and the three estimates of GDP were of equal reliability, the averaging procedure used to construct the compromise estimate of GDP would provide a practical and simple solution to measurement error problems. The average of the three estimates would be more reliable than any individual series. However, as can be seen from table i, and figure I, measurement errors are not randomly distributed. In addition the reliability values of the component series of GDP are known to differ;2 in these circumstances the compromise estimate of GDP will contain consistent biases. A more important problem of using the compromise estimate to describe the behaviour of the economy is that the simple averaging procedure does not indicate what adjustments should Table i. Autocorrelation estimates of the aggregate residuals: current and" @default.
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- W2521759969 date "2016-01-01" @default.
- W2521759969 modified "2023-09-26" @default.
- W2521759969 title "UK national income, I 920-I938: the implications of balanced estimates" @default.
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