On Fri, 3 May 1996, Greg Ehrig wrote:
> Joshua wrote:
>
> " If you multiply the standard of living index times GDP (per capita
> times population) I think you'd get a more meaningful index of what Bob
> Summers at Penn had in mind when he devised that index. I'm not expert
> on it, though.
> "
>
> I really think that the index as presented is meant more as
> comparison tool across countries, not within them.
No, the data in the Penn World tables were developed for growth
studies, and it was therefore obviously intended for both time series
comparisons within countries as well as comparisons between countries:
any growth measure has to involve a comparison within a country at
different periods of time!
But to use it as a single index, rather than as a single dimension
in a multi-dimensional analysis, you should multiply by GDP, and per
capita GDP would be more appropriate to what we have been discussing.
Virtually,
Bruce R. McFarling, Newcastle, NSW
ecbm@cc.newcastle.edu.au