Evidence that Capital Formation is Over-Estimated in ICP 2011
Using the ICP 2011’s cross-country data on input prices and project cost shares, I show that the construction prices in ICP 2011 are substantially underestimated in low and middle income countries. As a consequence, the PPP-adjusted construction in these countries is overestimated on average by abou...
- Autores:
-
Breton, Theodore R.
- Tipo de recurso:
- Fecha de publicación:
- 2015
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/5508
- Acceso en línea:
- http://hdl.handle.net/10784/5508
- Palabra clave:
- ICP 2011
ICP 2005
construction prices
PPP
construction data
capital data
- Rights
- License
- Acceso abierto
| Summary: | Using the ICP 2011’s cross-country data on input prices and project cost shares, I show that the construction prices in ICP 2011 are substantially underestimated in low and middle income countries. As a consequence, the PPP-adjusted construction in these countries is overestimated on average by about 100% and gross fixed capital formation as a share of GDP is overestimated by 25-30%. I also examine the ICP 2005 construction prices and show that there are similar problems with the ICP 2005 data. |
|---|