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Analysing the effects of annual chain-linking on the output measure of GDP
Analyses the effects of annual chainlinking, outlined in a previous article, by apportioning the effect of growth by industry group.
The effects of annual chain-linking on the output measure of GDP, have been described in an earlier article. This article shows further analyses of the growth estimates. Both the contribution of individual industry groups to the overall annual chain-linked growth estimates and the contributions of each industry group to the effect of annual chain-linking are estimated. The results show that fixed base growth estimates give greater weight to Information and Communication technologies (ICT) than annual chain-linked growth estimates. The analysis was carried out without the effect of the quality and balancing adjustments which were included in the original model.
The impact of replacing UK deflators with faster-falling US hedonic deflators, for one ICT group, manufacture of computers, at the same time as annual chain-linking has been investigated as a sensitivity analysis and shows that annual chain-linking removes the positive effect on growth of the faster-falling deflators.
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