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### Can PPP adjusted values be compared over time?

I'm a little baffled about this: Let's say I want to compare the average income of 2 countries, A and B. Of course I'm interested in the real income so I adjust to PPP using the big mac index of that ...
198 views

### Conversion of GDP PPP International \$2005 into GDP PPP International \$ 2011

Essentially I have two different datasets that I'm trying to consolidate. One set of data comes from the World Bank Databank, and is a set of historical GDP PPP values for all countries expressed in ...
51 views

### Convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for a number of countries

Which conversion factor / formula should be used to convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for different countries? I have found an identical question, but without a clear, ...
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### What is the best measure for the world's economic cycle?

I'm trying to make a graph that shows how the return of major assets (S&P 500 index, % of 3Y T-notes, oil, gold, etc) move along with the world's expansion& recession cycle. I looked into ...
37 views

### Is there any up-to-date list of hours of work needed to buy a Big Mac?

Is there any up-to-date list of hours of work needed to buy a Big Mac? I have found only up to 2018.
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### Why is Pakistan's GDP higher than Bangladesh in PPP but lower in Nominal?

Why is Pakistan's GDP higher than Bangladesh in PPP but lower in Nominal? Kindly explain in layman's terms.
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### If a Chinese person wants to buy an iPhone or any international goods, which GDP per capita would be a better indicator?

Which GDP per capita of a Chinese citizen would better reflect their affordability- Nominal GDP per capita or PPP GDP per capita of China? My question is would PPP would matter much in case of buying ...
23 views

### How are PPP, nominal exchange rates and inflation related?

This Forbes article discusses how changes in the market exchange rate can be used to estimate an inflation rate thanks to the principle of purchasing power parity (PPP). Can someone distill this ...
49 views

### How much do the concepts and methodologies of GDP, CPI, PPP overlap?

Indicators of greatest importance in macro-economics are: the gross domestic product (GDP ā comparison and growth of wealth) the consumer price index (CPI ā inflation rate) purchasing power parity (...
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### How long can I live in the United States with my German monthly income?

I see different (more or less abstract resp. specific) approaches to compare wealth (of individuals, regions, and countries): by living standards by living expenses by incomes/salaries by purchasing ...
246 views

### How are purchasing power parity (PPP) conversions computed?

How are purchasing power parity (PPP) conversions computed? I guess that goods' and services' prices are compared across different countries/currencies. However, there are services such as healthcare ...
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How to read PPP$aloud? That is in a paper that I should read loud in a presentation, but I don't know the most Is it "purchasing power parity in US Dollar," or "purchasing power parity in terms ... 0answers 16 views ### Does PPP measure conversion taken into account government service and taxes? Apology in advance if this question seems too elementary. I am intrigued by this article I came across,Do We Care About Income Inequality, or Absolute Well-Being? And in the article the author was ... 2answers 60 views ### How purchasing power reduces when currency is commodity money(say gold) First of all I am new to Economics. I'm a B.Sc.(Mathematics) final year student. I was curious to learn Economics so I started with "Economics in one lesson" by Henry Hazlitt. In this book I ... 1answer 75 views ### What does it mean if country X has a higher GDP at Purchasing Power Parity (PPP) than country Y? I understand the implications of having a higher/lower GDP at market exchange rates. I also understand what PPP measures. But, what does a difference in GDP, at PPP, indicate in terms of differences ... 1answer 2k views ### Converting a GDP series to constant international dollars I want to convert a GDP series (I have it in current euros) of a country to constant 2005 international dollars. My idea is to divide the series by year 2005's$PPP$conversion factor (the exchange ... 0answers 30 views ### Devaluation of exchange rate meaning Pilbeam's textbook on International Finance (p. 106) says: (...) the immediate effect of a devaluation of exchange rate from$S_1$to$S_2$is to make domestic good competitive (...) How can be ... 1answer 405 views ### How to adjust salaries of more than two countries to a common year given that the data was collected in different years? I want to compare salaries of more than two countries. The data I am using is based on the Occupational Wages around the World (OWW) database. Let's say I want to look at the salaries of the nurse. ... 2answers 80 views ### PPP / currency evaluation An economics book has the following example: In the USA, a Big Mac sells for 1 USD, while in Germany it sells for 3 EUR. The "fair" FX relation would therefore be 1 USD = 3 EUR. At the FX market, ... 1answer 383 views ### How to address PPP when doing price comparison across countries? I'm measuring some very specific items (across 5 countries) using my country's currency as the base. My questions are: How should I address PPP in this case? (Is it just like the example in Table 1 ... 1answer 373 views ### How to calculate constant GDP in international$ from nominal GDP in local currency units

I want to calculate a constant GDP serie from 1995 till 2014 based on nominal GDP expressed in Yuan (Chinese currency). I already get stuck on how to first make a constant GDP serie based on Yuan, ...
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### What exactly is purchasing power parity (PPP)?

I have some questions regarding what exactly PPP is. In my understanding, PPP is essentially the value that a currency can purchase within an area. For example, although the USA might have more money ...
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### Where to find more detailed data for International Comparison Program 2011?

According to the World Bank PPP conversion factors, in 2014, 0.86 SGD could buy as much stuff in Singapore as could 1 USD in the USA (presumably Averagetown, USA). The market exchange rates in 2014 ...
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### Estimating national intangible wealth

I seem to recall reading about the following research regarding "national intangible wealth" (IIRC): For each country, compute the GDP. Convert the GDP to "total national capital" using an interest ...
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### What would be the consequences of universal parity of buying power (wage value) and freedom to buy?

I've wondered about this for many, many, years..... maybe there's an answer (or several answers?) after all. As the global economy is set up, one reason a person in the US and EU can afford a nice ...
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### Questions on comparing GDP between various countries

What is the difference between OER vs PPP? What fundamentally drives them? Shouldnt an arb opportunity exist and wouldnt that difference then go away? My understanding of OER is the official nominal ...
1k views

### What exactly is the difference between the PPP (“purchasing power parity”) and LOOP (“law of one price”)?

For PPP & LOOP: e = EP/P* = 1 So both are valid if goods in the US and EU cost the same in \$ for example. But then, what exactly is the difference between both?
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### What goods are included in the ICP classification?

I would like to find out what goods are compared across countries in the International Comparison Programme in order to calculate purchasing power parities. I know there are possibly thousands of ...
46 views

### What will I see of the ā¬545 from TTIP?

According to this TTIP paper, a European family of four will see their annual disposable income increase by ā¬545 on average: These gains can also be translated into household disposable income. ...
779 views

### In the US, do high wages in regions like New York and California offset the high cost of living?

It's well understood that the cost of living in New York City vastly exceeds the cost of living in, say, rural Louisiana. It is also well understood that wages in New York City vastly exceed those in ...