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Does the Digital Economy Distort the Volume-Price Split of GDP? The French Experience

Author

Listed:
  • Lorraine Aeberhardt
  • Florian Hatier
  • Marie Leclair
  • Benoît Pentinat
  • Jean-Denis Zafar

Abstract

[eng] The slowdown in economic growth over the past two decades is in contrast with the digitisation of the economy. As a result, certain economists are wondering about a possible problem in measuring GDP and, in particular, its volume-price split. The article reviews the methods used by statisticians, with a focus on France, to distinguish changes in price from changes in volume, with a particular attention the particularities and difficulties linked with the digital economy: communication goods and services, the existence of forms of digital sales, the emergence of new digital services and the development of free services. While the methods put in place deserve to be questioned, a simulation shows that an error in the measurement of the prices of information and communication products is not likely to explain the slowdown in economic growth.

Suggested Citation

  • Lorraine Aeberhardt & Florian Hatier & Marie Leclair & Benoît Pentinat & Jean-Denis Zafar, 2020. "Does the Digital Economy Distort the Volume-Price Split of GDP? The French Experience," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 139-156.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_9
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2027
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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