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From |
Nick Cox <njcoxstata@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: How to Convert Nominal GDP to Real GDP |

Date |
Fri, 21 Sep 2012 10:29:31 +0100 |

My code was offered as a way to do it. Nick On Fri, Sep 21, 2012 at 10:24 AM, Lovisa Persson <lovisa.persson@nek.uu.se> wrote: > What I mean by cpi2001 etc is that you replace this with the actual values > from your variable CPI from the year in question. > > If your variable CPI is in rate of change and the value for 2001 is 0.021 > and the value for 2002 is 0.025 > Then you will have > > Generate index=1 > replace index=1.021 if year==2001 > replace index=(1.021)*(1.025) if year==2002 > > The index variable will then be: > 1 (at base year 2000) > 1.021 (2001) > 1.046525 (2002) > > Etc... > > This is what I would do, but there is maybe a more flashy way to do it. > > But if your CPI variable is already in index form, related to year 2000, > there is no need.... > > Lovisa > > > > > -----Original Message----- > From: owner-statalist@hsphsun2.harvard.edu > [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Nick Cox > Sent: den 21 september 2012 11:10 > To: statalist@hsphsun2.harvard.edu > Subject: Re: st: How to Convert Nominal GDP to Real GDP > > I think you need to explain where the variables -cpi2001-, -cpi2002-, etc. > come from in your solution. > > I guess that you are thinking in terms of subscripts, but writing otherwise. > > Perhaps you mean something more like > > gen index = 1 > replace index = index[_n-1] * (1 + cpi) if _n > 1 > > Nick > > On Fri, Sep 21, 2012 at 9:44 AM, Lovisa Persson <lovisa.persson@nek.uu.se> > wrote: > >> Is your variable CPI an index with value 100 or 1 at base year 2000? >> >> In that case you do what Lukas recommended. >> >> If the CPI is in rate of change from year to year, you first need to >> generate a price index variable with base year 2000 , and THEN you do >> what the previous responder told you. >> >> generate index=1 >> replace index=1+cpi if year==2001 >> >> and then you impute the rest of the values... >> >> replace index=(cpi2001+1)*(cpi2002+1) if year==2002 replace index= >> (cpi2001+1)*(cpi2002+1)* (cpi2003+1) if year==2003 >> >> You impute the actual values of the CPI in rate of change... >> >> Now you have an index which you can use to generate your Real GDP > variable. >> Using your nominal GDP variable and divide it by the index just as >> described below. > > Lukas Borkowski > >> the answer would be -gen realgdp = gdp/cpi- > > Shawn Meyer: > >>> I am new user to Stata. I am requesting if you could teach me >>> something >> which sounds very simple. I have a panel data on GDP of over 100 >> countries for 10 years; from 2000 to 2010 with four variables id, year, > GDP and CPI. >> Now I want to generate a new variable REALGDP so that I get real GDP >> for each country (id), with 2000 as the base year. Could you please >> help me how to do it? * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**RE: st: How to Convert Nominal GDP to Real GDP***From:*"Lovisa Persson" <lovisa.persson@nek.uu.se>

**References**:**st: How to Convert Nominal GDP to Real GDP***From:*Shawn Meyer <shawnmeyer007@hotmail.com>

**Re: st: How to Convert Nominal GDP to Real GDP***From:*Lukas Borkowski <LukasBork@hotmail.com>

**RE: st: How to Convert Nominal GDP to Real GDP***From:*"Lovisa Persson" <lovisa.persson@nek.uu.se>

**Re: st: How to Convert Nominal GDP to Real GDP***From:*Nick Cox <njcoxstata@gmail.com>

**RE: st: How to Convert Nominal GDP to Real GDP***From:*"Lovisa Persson" <lovisa.persson@nek.uu.se>

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