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The Reconciliation of Values, Volumes and Prices in the National Accounts
Author(s) -
Weale Martin
Publication year - 1988
Publication title -
journal of the royal statistical society: series a (statistics in society)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.103
H-Index - 84
eISSN - 1467-985X
pISSN - 0964-1998
DOI - 10.2307/2982193
Subject(s) - economics , keynesian economics , econometrics , mathematics , mathematical economics
Summary The problem of reconciling constant and current price national income accounts is considered. It is necessary to take account of the fact that both additive and multiplicative restrictions exist between volume and value estimates and the related deflators. Covariances, implied by the sources from which the data are constructed, must also be considered. The accounts can then be balanced. Although a linear approximation is used to take account of the multiplicative restrictions, this approximation is found to be perfectly adequate.