Lower ICP 2005 construction prices in developing countries increase the effect of capital on output in PWT 7.1 and 8.0 and cause negative world TFP growth during 1990-2010 in PWT 8.0. The investment data appear to be more accurate in PWT 6.3.

Construction prices in developing countries in ICP 2005 are lower relative to prices in developed countries than in earlier versions of the ICP. Our estimates of the Colombia/U.S. ratio of prices for office buildings demonstrate that the ICP 2005 price ratio for these countries is substantially...

Penn World Table (PWT) 7.0 is the newest PWT data set, based in part on benchmarked prices collected in 2005. In theory the data in PWT 7.0 should be more accurate than the data in PWT 6.3 since 1996 and similar in earlier years. I show that PWT 7.0 GDP/capita and price data for 1970 to 1996...