Gross domestic product deflator ( GDP deflator ) - a price index created to measure the general level of prices for goods and services ( consumer basket ) for a certain period in the economy. It is calculated as the Paasche index and is expressed as a percentage.
Content
Key Features
- When calculating the price deflator, all goods and services included in the country's GDP are taken into account
- This index does not include imported goods.
- Based on the current year’s consumer basket, not the base one, as with the consumer price index
- Includes prices for new products and services.
Settlement
It is the ratio of nominal GDP , expressed in market prices of the current year, to real GDP , expressed in prices of the base year. [one]
i.e,
This expression is then usually multiplied by 100 to translate into percentages.
Application
Allows you to determine the real changes in the volume of production of goods and services in the economy. The official GDP statistics deflator is usually calculated by the Federal State Statistics Service in Russia.
Sources
- Matveeva T. Yu. “Introduction to Macroeconomics”, HSE Publishing House, 2008
- GDP deflator in Russia and other countries of the world
- Dictionary of Modern Economic Theory of Macmillan.-M., 1997
- Raizberg B.A., Lozovsky L. Sh., Starodubtseva Ye. B. Modern economic dictionary. -5th ed., Revised. and additional - M., 2006
- Orlov A.I. Econometrics. - 3rd ed., Revised. and add. - M., 2004
Notes
- ↑ Foreword