Dear Researcher
I have GDP data from 1972 to 2012, with 1999-2000= 100 base year prices and for the last three years with 2000-2006=100 base year prices but i want to change the last three in 1999-2000= 100 base year price please some one explain me how can do it? i very thankful
Regards
Irshad
There are at least a couple of ways to do this. My first choice is to go to the original GDP data and converted yourself to real GDP. The reason I prefer this is because you're using the same data set for all your numbers for nominal GDP and the same price index, which is called the implicit price deflator for GDP. The procedure is to divide nominal GDP by the decimal equivalent of the implicit price deflator for GDP. You can be sure that you are doing it correctly if the base year for your price index has exactly the same value for nominal GDP and real GDP, because you were divided by 1.00, which is the decimal equivalent of 100 percent.
Another approach is to find overlapping years and to the algebraic conversion; however, it is critically important to ensure you were using compatible data (e.g., from the same source and using similarly created price indices.
I hope this helps. Rob
In the second set of data you have a multiple-year base price (2000-2006=100). It is a little bit strange because in a normal situation you can choose one period to be the base. I think having the nominal data set of the values will be easier to work. As the colleague has mentioned, using this method you can transform the complete nominal series to any base-period you want. And for that you need to have the implicit deflator to make these changes in the base-period.
I would like to add my voice and agree with Mr. Catlett and Mr. Hayne the method they proposed of using the GDP deflator.
In the meantime, I should say that it is possible to use the average of two or three consecutive years as base (specially price index) to avoid using one year where things were not normal because of unusual events like drought, civil unrest and other disasters. But it is uncommon to use 6 years as base. I would love to know the rationale for utilizing that method if there is any.
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