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Why is GDP typically revised upwards?
Author(s) -
Franses Philip Hans
Publication year - 2009
Publication title -
statistica neerlandica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 39
eISSN - 1467-9574
pISSN - 0039-0402
DOI - 10.1111/j.1467-9574.2008.00410.x
Subject(s) - simple (philosophy) , gross domestic product , economics , real gross domestic product , cover (algebra) , econometrics , gdp deflator , macroeconomics , engineering , mechanical engineering , philosophy , epistemology
Quarterly and annual gross domestic output (GDP) data are usually revised, and this revision process may cover a few years. It is also usually found that GDP figures are revised upwards. In this note, I provide a simple explanation for why this happens. Implications for interpreting and forecasting GDP data are less simple.