Alan Heston
Encyclopedia
Alan W. Heston is an American
economist
best known for his collaborative work with fellow economist Robert Summers
and the development of the Penn World Table
(PWT).
. In 1955, he received his B.A. in Economics from the University of Oregon
. He received his M.A. in Economics from the University of Washington
in 1957. In 1962, he received his Ph.D. in Economics from Yale University
, where he studied under James Tobin
, the winner of the 1981 Nobel Memorial Prize in Economic Sciences
.
, where he has taught since 1962. Prior to teaching at the University of Pennsylvania, Heston was an Assistant Professor at Yale University.
Heston co-directs (with Robert Summers
) the University of Pennsylvania’s Center for International Comparisons (CIC). The precursor to CIC was the United Nations’ (UN) International Comparison Programme (ICP), which Heston joined in its first year in 1968. The ICP developed the first systematic multilateral set of purchasing power comparisons. Heston participated in the ICP’s benchmark comparisons and, by 1985, with Summers and Irving Kravis, expanded the number of countries included in the comparison database to 34 countries. That same year Heston and Summers developed benchmark comparisons of gross domestic product
estimates on a purchasing power basis for non-benchmark countries for one year. Heston and Summers continued these comparisons and extended the estimates over both time and space in an effort that became the Penn World Table. For that work, Summers and Alan Heston were recognized as American Economic Association
Distinguished Fellows in 1998. Heston is considered a leading world expert on international economic comparisons and purchasing power parity.
as a set of national-accounts
economic time series
covering 138 countries. Penn World Table expenditure entries are denominated in a common set of prices in a common currency to enable real quantity comparisons between countries and over time. The table also provides relative price details within and between countries, demographic data, and capital stock estimates. The article introduced an updated, revised, and expanded version of the table with broader applicability to researchers, and was one of the most cited economic papers of the 1990s. Heston’s and Summers’ techniques and data are widely used and cited, and a number of international organizations have adopted their methodology.
In developing the Penn World Table, Heston, with Kravis and Summers, produced a series of three publications in 1975, 1978, and 1982. These publications provided the detailed methodology of their international measurement approach to multilateral comparisons. The three economists developed an international price index
for the valuation of each country’s quantities. These formulas came into the limelight as the re-structuring and assistance programs of the major multilateral investment institutions gained traction in the 1980s and required more refined data for loan and assistance programs.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
best known for his collaborative work with fellow economist Robert Summers
Robert Summers
Robert Summers is a U.S. economist and professor emeritus, University of Pennsylvania, where he taught from 1960. A widely cited early work by Summers is on the small-sample statistical properties of alternate regression estimators where analytical measures are unavailable.Summers received his...
and the development of the Penn World Table
Penn World Table
The Penn World Table is a set of national-accounts data developed and maintained by scholars at the University of Pennsylvania to measure real GDP from the corresponding relative price levels across countries and over time...
(PWT).
Education and early life
Heston was born October 18, 1934 and raised in Portland, OregonPortland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
. In 1955, he received his B.A. in Economics from the University of Oregon
University of Oregon
-Colleges and schools:The University of Oregon is organized into eight schools and colleges—six professional schools and colleges, an Arts and Sciences College and an Honors College.- School of Architecture and Allied Arts :...
. He received his M.A. in Economics from the University of Washington
University of Washington
University of Washington is a public research university, founded in 1861 in Seattle, Washington, United States. The UW is the largest university in the Northwest and the oldest public university on the West Coast. The university has three campuses, with its largest campus in the University...
in 1957. In 1962, he received his Ph.D. in Economics from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
, where he studied under James Tobin
James Tobin
James Tobin was an American economist who, in his lifetime, served on the Council of Economic Advisors and the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He developed the ideas of Keynesian economics, and advocated government intervention to...
, the winner of the 1981 Nobel Memorial Prize in Economic Sciences
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics, but officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel , is an award for outstanding contributions to the field of economics, generally regarded as one of the...
.
Academic career
Heston is a professor emeritus in the Department of Economics at the University of PennsylvaniaUniversity of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
, where he has taught since 1962. Prior to teaching at the University of Pennsylvania, Heston was an Assistant Professor at Yale University.
Heston co-directs (with Robert Summers
Robert Summers
Robert Summers is a U.S. economist and professor emeritus, University of Pennsylvania, where he taught from 1960. A widely cited early work by Summers is on the small-sample statistical properties of alternate regression estimators where analytical measures are unavailable.Summers received his...
) the University of Pennsylvania’s Center for International Comparisons (CIC). The precursor to CIC was the United Nations’ (UN) International Comparison Programme (ICP), which Heston joined in its first year in 1968. The ICP developed the first systematic multilateral set of purchasing power comparisons. Heston participated in the ICP’s benchmark comparisons and, by 1985, with Summers and Irving Kravis, expanded the number of countries included in the comparison database to 34 countries. That same year Heston and Summers developed benchmark comparisons of gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
estimates on a purchasing power basis for non-benchmark countries for one year. Heston and Summers continued these comparisons and extended the estimates over both time and space in an effort that became the Penn World Table. For that work, Summers and Alan Heston were recognized as American Economic Association
American Economic Association
The American Economic Association, or AEA, is a learned society in the field of economics, headquartered in Nashville, Tennessee. It publishes one of the most prestigious academic journals in economics: the American Economic Review...
Distinguished Fellows in 1998. Heston is considered a leading world expert on international economic comparisons and purchasing power parity.
Penn World Table
In 1991, Heston co-authored with Summers a Quarterly Journal of Economics article titled "The Penn World Table (Mark 5): An Expanded Set of International Comparisons." This article describes the Penn World TablePenn World Table
The Penn World Table is a set of national-accounts data developed and maintained by scholars at the University of Pennsylvania to measure real GDP from the corresponding relative price levels across countries and over time...
as a set of national-accounts
National accounts
National accounts or national account systems are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry accounting...
economic time series
Time series
In statistics, signal processing, econometrics and mathematical finance, a time series is a sequence of data points, measured typically at successive times spaced at uniform time intervals. Examples of time series are the daily closing value of the Dow Jones index or the annual flow volume of the...
covering 138 countries. Penn World Table expenditure entries are denominated in a common set of prices in a common currency to enable real quantity comparisons between countries and over time. The table also provides relative price details within and between countries, demographic data, and capital stock estimates. The article introduced an updated, revised, and expanded version of the table with broader applicability to researchers, and was one of the most cited economic papers of the 1990s. Heston’s and Summers’ techniques and data are widely used and cited, and a number of international organizations have adopted their methodology.
In developing the Penn World Table, Heston, with Kravis and Summers, produced a series of three publications in 1975, 1978, and 1982. These publications provided the detailed methodology of their international measurement approach to multilateral comparisons. The three economists developed an international price index
Price index
A price index is a normalized average of prices for a given class of goods or services in a given region, during a given interval of time...
for the valuation of each country’s quantities. These formulas came into the limelight as the re-structuring and assistance programs of the major multilateral investment institutions gained traction in the 1980s and required more refined data for loan and assistance programs.