Tag Archives: GDP

The Known Unknowns of Historical GDP Estimates

A figure from the most recent update to the Maddison Project illustrates how little we know about historical GDP.

One of my favourite graphs in recent writing on economic history might seem obscure. Reproduced below, it is found on page 28 of the working paper underlying the latest update of the Maddison Project database of historical GDP estimates. It shows the various estimates of British GDP per capita relative to US GDP per capita from 1770 to 1950. For me, this is interesting because it illustrates how little we know about levels of GDP in the past.

Continue reading →

Was Argentina Really Better Off Than the United States in 1800?

2 Replies

Argentina’s economic history provides yet another example of the problem of Mickey Mouse numbers.

When a prominent economic historian provides a new estimate of something, it is likely that the estimate will be taken at face value. Other economic historians will cite it, so it becomes reified, until it is treated as fact, even when it is little more than fancy. John Coatsworth’s estimate of Argentina’s GDP in 1800 provides an example of this.

Continue reading →

Is the Penn World Table Credible?

Accepting Argentina’s GDP statistics in the new version of the Penn World Table would require a major rewrite of its post-war history.

Last year the eighth edition of the Penn World Table (PWT) was released to considerable fanfare – indeed, one commentator described it as ‘a special day for all researchers and practitioners of economics‘. Yet its series for Argentina raises more questions than it answers.

Continue reading →

Argentina: Decline or Urbanisation?

5 Replies

Argentina’s apparent decline during the twentieth century is more likely an illusion created by faulty GDP statistics.

Recently the Economist published a front-page feature on ‘The Tragedy of Argentina: A Century of Decline‘. By summarising the current scholarship on the ‘Argentine paradox’, the article demonstrates why the study of the country’s history remains so necessary.

Continue reading →