If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

On measuring average growth rate

$54.78 plus tax (Refund Policy)

Buy Article:

Abstract:

This study investigates the difference in average growth rates obtained from two commonly used methods. It is analytically shown that the difference lies on the dichotomy of constant and time-varying growth that can be converted to the dichotomy of trend stationary (TS) and difference stationary (DS) processes. For TS processes the two methods would yield the same results whereas they differ in case of integrated processes. It is also proven that the OLS residuals of a log-linear trend model of an integrated series will be always a random walk, in which case the differenced model that yields the same result as geometric mean is appropriate. The findings are illustrated on the real GDPs of OECD countries.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0003684042000217670

Affiliations: Balikesir University Department of Econometrics 10200 Bandirma Turkey, Email: galtinay@balikesir.edu.tr

Publication date: April 1, 2004

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more