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Purchasing power parities and consumer theory

Adam Szulc ()

Applied Economics Letters, 1996, vol. 3, issue 1, 5-7

Abstract: Purchasing power parities are calculated using the index number defined as a ratio of cost functions in two price situations. The definition does not require similarity of preference across countries. Necessary parameters are estimated using translogarithmic Hicksian budget shares. The results may be useful in comparisons of consumption because of the relevance to the consumer theory.

Date: 1996
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DOI: 10.1080/758525506

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