The Effects of International Trade on the Measurement of Real National Income

Nicholson, J. L.

doi:10.2307/2228832

Cited by 23 publications

(15 citation statements)

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“…(a) those based on the price of exports or imports or some average of the two (Nicholson (1960), anti-Nicholson, Geary-Burge (1957), Geary (1961), United Nations Statistical Office (1986a), Courbis (1969) and Kurabayashi (1971»;(b) those based on the price of other economic variables in-addition to or instead of export and import prices (Stuvel, 1956;Scott, 1979;Godley and Cripps, 1974;United Nations, 1968).…”

Section: Alternative Deflatorsmentioning

confidence: 99%

“…The United Nations cites as a justification for its formula that terms of trade should only have a redistributive effect. However, as Nicholson (1960) has argued:…”

Section: Amentioning

confidence: 99%

“…Too much attention should not be paid to the criterion of symmetry. As Nicholson (1960) has pointed out symmetry is not a desirable property. Nicholson's formula gives the gain (loss) in income in terms of its ability to purchase (forego) imports:…”

Section: Choice Between Deflatorsmentioning

confidence: 99%

“…For the same goods and services which form part of the domestic and nationalproduct of one countryform the importsand hence are part of the real income of the other country. Theseare simply two sides of the samecoin' (Nicholson, 1960).…”

Section: Choice Between Deflatorsmentioning

confidence: 99%

See 3 more Smart Citations

The Measurement of a Nation's Terms of Trade Effect and Real National Disposable Income within a National Accounting Framework

Silver¹,

Mahdavy²

1989

Journal of the Royal Statistical Society. Series A (Statistics

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Changes in a nation's real income may differ from changes in domestic production due to gains (losses)arising from changes in the prices of exports relative to imports (terms of trade effect) and changes in net factor income and current transfers from abroad. Measures of these components in real terms are contingent on a particular utilization of the income arising (foregone) from these sources. This paper proposes a national accounting framework for the measurement of real income, surveys and proposes alternative deflators and provides empirical evidence of how misleading a measure contingent on one spending scenario is. An interpretat,ive framework based on more than one measure is proposed.

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Section: Alternative Deflatorsmentioning

confidence: 99%

“…The United Nations cites as a justification for its formula that terms of trade should only have a redistributive effect. However, as Nicholson (1960) has argued:…”

Section: Amentioning

confidence: 99%

Section: Choice Between Deflatorsmentioning

confidence: 99%

Section: Choice Between Deflatorsmentioning

confidence: 99%

See 2 more Smart Citations

The Measurement of a Nation's Terms of Trade Effect and Real National Disposable Income within a National Accounting Framework

Silver¹,

Mahdavy²

1989

Journal of the Royal Statistical Society. Series A (Statistics

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“…The SNA presents several options for deflating net exports, including import prices, export prices, an average of import and export prices, or a final domestic expenditure price index. No consensus has been reached about which method is most satisfactory (see Stuvel, 1956; Nicholson, 1960; Geary, 1961; Courbis, 1969; Kurabayashi, 1971; Denison, 1981; Silver and Mahdavy, 1989; SNA, 1993; Kohli, 2006a). Currently the Bureau of Economic Analysis in the United States calculates a command basis GDP that is equivalent to the real GDI discussed in the SNA using an import price deflator.…”

mentioning

confidence: 99%

Real Gross Domestic Income, Relative Prices, and Economic Performance Across the Oecd

Macdonald

2010

Review of Income and Wealth

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This paper uses OECD data to examine changes in labor productivity, real gross domestic product (GDP) and real gross domestic income (GDI), economic aggregates, and relative economic growth over time. Real GDI combines changes in production (real GDP) with a trading gain derived from relative price changes. The paper considers two sources of trading gains: the terms of trade, and the real exchange rate. For OECD countries, the terms of trade is the more important price ratio, making a contribution to real income growth that is, on average, an order of magnitude larger than the real exchange rate. Over long time periods, the most important source of real income growth is changes in production. Over shorter time horizons, however, the trading gain can make noteworthy contributions. Changes in aggregates like real private consumption, or the relative economic performance of nations, are shown to be particularly dependent on the trading gain during the large swings in resource prices that occurred post-2002. Copyright 2010 The Author. Review of Income and Wealth 2010 International Association for Research in Income and Wealth.

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Price and Volume Measures in the System of National Accounts

Diewert

1996

The New System of National Accounts

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The Effects of International Trade on the Measurement of Real National Income

Cited by 23 publications

References 0 publications

The Measurement of a Nation's Terms of Trade Effect and Real National Disposable Income within a National Accounting Framework

The Measurement of a Nation's Terms of Trade Effect and Real National Disposable Income within a National Accounting Framework

Real Gross Domestic Income, Relative Prices, and Economic Performance Across the Oecd

Price and Volume Measures in the System of National Accounts

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