Measuring Economic Growth from Outer Space: A Comment

Berliant, Marcus and Weiss, Adam (2013): Measuring Economic Growth from Outer Space: A Comment.

Abstract

We examine econometric and elementary economic theory issues arising from the model specification in Henderson, Storeygard and Weil (2012), that uses night light data to proxy for missing or unreliable GDP growth data. An alternative approach based on the expenditure function is outlined. It can accommodate prices as well as quantity information from other commodity markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: GDP; Night light data; Omitted variable; Expenditure function; Spatial autocorrelation
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries

References

Henderson, J.V., A. Storeygard and D.N. Weil (2012). "Measuring Economic Growth from Outer Space," American Economic Review 102, 994-1028.

Jerison, M. (1984). "Aggregation and Pairwise Aggregation of Demand When the Distribution of Income Is Fixed," Journal of Economic Theory 33, 1-31.

Kapoor, M., H.H. Kelejian and I. Prucha (2007). "Panel Data Models with Spatially Correlated Error Components," Journal of Econometrics 140, 97-130.