Estimating Real Production and Expenditures Across Nations: A Proposal For Improving the Penn World Tables

The authors propose a new approach to international comparisons of real GDP measured from the output-side. On the basis of a set of domestic final output, import and export prices and values for 14 European countries and the U.S., it is shown that differences between real GDP measured from the expenditure and output-side can be substantial, especially for small open economies.