The Next Generation of the Penn World Table

TLDR

Version 8 of the Penn World Table expands on earlier releases by adding three key features. The paper outlines the theory and practice of cross‑country, time‑series real GDP comparisons. The authors extend the PWT by adding real GDP on the output side, benchmarking growth rates to multiple years of cross‑country price data, reintroducing capital stock and productivity data, and discussing applications such as the Balassa‑Samuelson effect and development accounting. JEL codes: C43, C82, E01, E23, I31, O47.

Abstract

We describe the theory and practice of real GDP comparisons across countries and over time. Version 8 of the Penn World Table expands on previous versions in three respects. First, in addition to comparisons of living standards using components of real GDP on the expenditure side, we provide a measure of productive capacity, called real GDP on the output side. Second, growth rates are benchmarked to multiple years of cross-country price data so they are less sensitive to new benchmark data. Third, data on capital stocks and productivity are (re)introduced. Applications including the Balassa-Samuelson effect and development accounting are discussed. (JEL C43, C82, E01, E23, I31, O47)