In this paper we propose a new approach to international comparisons of real GDP measured from the output-side. The traditional Geary-Khamis system to measure real GDP from the expenditure-side is modified to include differences in the terms of trade between countries. It is shown that this...

From its inception, the Penn World Tables (PWT), building on the International Comparisons Program (ICP)of the United Nations, has sought to compare the standard of living of individuals in different countries. That is, the termreal GDP per capitaas reported in the PWT is intended to represent...