[KSCI] Korea Science Citation Index Service

http://dx.doi.org/10.5351/KJAS.2012.25.6.877

Introduction of Chain-Weighted Method and GDP Fluctuations

Lee, In Gyu (Economic Statistics Department, The Bank of Korea)
Park, Chun Il (Department of Economics, Yonsei University)

Publication Information

The Korean Journal of Applied Statistics / v.25, no.6, 2012 , pp. 877-887 More about this Journal

Abstract

The Bank of Korea changed its method of GDP estimation from a fixed-weighted to a chain-weighted measure in 2009. The fixed-weighted method had had problems such as substitution bias and the rewriting of economic history. As a result of the change, annual growth rates calculated using the chain-weighted method from 1970 through 2008 turned out to be 0.8%p higher on average than the existing rates. The quarterly average chain-weighted growth rates were 0.19%p higher than the fixed-weighted ones, but they changed in the same directions. In this paper we analyze whether the differences in rates between the two calculation methods would bring about a difference in the cyclical characteristics of GDP. We conclude that although there were differences in growth rates after introduction of the chain-weighted method, there was no difference in the cyclical fluctuation.

Keywords

Chain-weighted GDP; trend; cycle; co-movement;

Citations & Related Records

Reference

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