A note on how to normalise the Geary-Khamis index of purchasing power parity

Utz-Peter Reich ()

AStA Wirtschafts- und Sozialstatistisches Archiv, 2018, vol. 12, issue 3, No 3, 235-244

Abstract: Abstract The World Bank regularly publishes GDP-figures of its member countries, compiled at purchasing power parities. It employs the Geary-Khamis index for transforming the aggregates. That index consists of a system of homogeneous equations, which requires an additional non-homogeneous equation, to determine an appropriate unit of value measurement. This is the US-$, at present. The paper discusses that convention, points out its shortcomings, suggests an alternative existing, and adds an interpretation in terms of international economics.

Keywords: Index numbers; Geary-Khamis index; Purchasing power parity; International comparison (search for similar items in EconPapers)
JEL-codes: C43 C82 F19 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11943-018-0233-0

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