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Does the version of the Penn World Tables matter? An analysis of the relationship between growth and volatility

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  • Natalia Ponomareva
  • Hajime Katayama

Abstract

The Penn World Tables (PWT) are an important data source for cross‐country comparisons in economics. The PWT have undergone several revisions over time. This paper documents how countries' output growth rates change across four publicly available versions of the PWT. We show that for some countries the magnitude of the differences is significant and/or the sign of the growth rates changes across versions. Using as an example Ramey and Ramey (1995), who found growth volatility has a significant negative effect on growth, we demonstrate that conclusions based on one version of the PWT may not hold under another version. Les tableaux mondiaux de Penn (Penn World Tables ou PWT) sont une source importante de données comparatives entre pays dans le monde économique. Les PWT ont subi plusieurs révisions dans le temps. Ce mémoire montre d'abord comment les taux de croissance du produit des pays changent selon les quatre versions des PWT disponibles au public. On montre que pour certains pays la taille des différences est significative et que même le signe de ces taux change d'une version à l'autre. Utilisant comme exemple Ramey et Ramey (1995) qui ont montré que la volatilité de la croissance a un effet négatif sur la croissance, les auteurs montrent que les conclusions fondées sur une version des PWT peuvent ne pas être fondées dans une autre version.

Suggested Citation

  • Natalia Ponomareva & Hajime Katayama, 2010. "Does the version of the Penn World Tables matter? An analysis of the relationship between growth and volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 152-179, February.
    • Handle: RePEc:wly:canjec:v:43:y:2010:i:1:p:152-179
    DOI: 10.1111/j.1540-5982.2009.01567.x
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    6. Robert Summers & Alan Heston, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950–1988," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 327-368.
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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