Posts Tagged ‘PPP’

Existence and Uniqueness of PPP Indexes

Most indexes used for computation of purchasing power parities (PPP) are defined in this way: Suppose there are  j=1,...,m  countries and  i=1,...,n  commodities. PPP for jth-country is defined as a weighted average of prices of commodities in that country deflated by  world average price of the respected commodities. Continue reading