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Theoretical and practical issues in purchasing power parities illustrated with reference to the 1993 Organization for Economic Co-operation and Development data

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This paper deals first with some theoretical issues in purchasing power parities, including the definition of a generalized class of additive indices, which includes the standard Geary–Khamis and Iklé indices as special cases, and the definition of indicators of price and quantity structure which are independent of the particular units in which quantities are originally expressed. The paper then provides a comparative analysis of the results of applying these techniques to the 1993 Organization for Economic Co-operation and Development data and relates the results to underlying features of the price and expenditure data.
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Keywords: Geary–Khamis index; Gini–Elteto–Koves–Schultz index; Iklé index; Index numbers; Purchasing power parities; Real volume comparisons

Document Type: Research Article

Publication date: 2000-03-01

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