Why is GDP typically revised upwards? |
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| Authors: | Philip Hans Franses |
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| Institution: | Econometric Institute, Erasmus University Rotterdam, PO Box 1738, NL-3000 DR Rotterdam, The Netherlands |
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| Abstract: | Quarterly and annual gross domestic output (GDP) data are usually revised, and this revision process may cover a few years. It is also usually found that GDP figures are revised upwards. In this note, I provide a simple explanation for why this happens. Implications for interpreting and forecasting GDP data are less simple. |
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| Keywords: | data revision GDP configural-weight theory |
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