Does PPP-adjusted data exaggerate the relative size of poor economies?

Patrick Honohan

Applied Economics Letters, 2001, vol. 8, issue 12, 799-802

Abstract: Though excellent for comparing living standards, conventional PPP-adjusted real income measures may be a poor basis for ranking economies by total size. They assign a far larger share of World output to poor countries than would a more relevant alternative based on valuing output using the equilibrium prices of an hypothetical world of full economic integration.

Date: 2001
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Working Paper: Does PPP-Adjusted Data Exaggerate the Relative Size of Poor Economies (1998)
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DOI: 10.1080/13504850110046480

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