Does the digital economy distort price and volume measures of GDP?

Lorraine Aeberhardt, Florian Hatier, Marie Leclair, Benoît Pentinat and Jean-Denis Zafar

Documents de travail
No F1903-G2019/04
Paru le :Paru le03/06/2019
Lorraine Aeberhardt, Florian Hatier, Marie Leclair, Benoît Pentinat and Jean-Denis Zafar
Documents de travail No F1903-G2019/04- June 2019

The slowdown in economic growth over the last twenty years contrasts with the digitization of the economy. As a result, some economists are wondering about a possible problem of measuring GDP and especially its volume and price measures. The article presents the methods used by statisticians to distinguish price changes from volume changes, focusing on the particularities and challenges of the digital economy: communication goods and services, the existence of digital sales forms, the emergence of new services, the development of free services. If the usual methods deserve to be questioned, a simulation shows that an error in the price measure of information and communication products is not likely to explain the slowdown in economic growth.