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What impact does the choice of formula have on international comparisons?

Keir Armstrong

Canadian Journal of Economics, 2001, vol. 34, issue 3, 697-718

Abstract: In this paper an empirical comparison of a number of alternative multilateral index-number formulae is undertaken. The magnitude of the effect of choosing one formula over another is ascertained using an appropriate cross-sectional data set constructed under the auspices of the Eurostat-OECD Purchasing Power Parity Programme. To this end, a new indicator is proposed that facilitates the measurement of the difference between two sets of bloc consumption shares, each computed using a different multilateral comparison method.

JEL-codes: C31 C43 C81 E31 F31 O57 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (3)

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