I was using R to calculate the annualized quarterly growth rate of real GDP by 400*diff(log(rgdp)).

If I perform in this way some of the percentage change is big.

However, if I calculate as 100*diff(log(rgdp)) than results seems to be accurate as what shows up on the most of the website.

Why is this happening? follow by the growth formula it should be multiplied by 400, not 100.

  • $\begingroup$ Is the data you have in GDP annual or quarterly? if it is annual, then the 100 is appropriate. $\endgroup$
    – Regio
    Apr 22 '19 at 17:25

Perhaps quarterly growth should be multiplied by 400, but not annualized quarterly growth?

  • $\begingroup$ is this not more appropriately a comment than an answer? $\endgroup$ Apr 11 at 19:11
  • $\begingroup$ @JesperHybel I felt like this answered the question in full, but if you disagree you can raise a flag to have this converted into a comment. And of course you are encouraged to post a better answer. $\endgroup$
    – Giskard
    Apr 11 at 19:37
  • $\begingroup$ I dont really know so I dont disagree. I was just reacting to the use of »perhaps« and »?« thinking you perhaps misposted. $\endgroup$ Apr 12 at 1:07

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