Constructing Purchasing Power Parities Using a Reduced Information Approach
A Research Study
Published on 1. January 2021
102 pages
978-92-9262-675-4 (ISBN)
Description
This publication presents the methodology and results of research on a cost-effective approach for estimating purchasing power parities (PPPs). The study drew on price and national accounts data from 20 economies in Asia and the Pacific. It used a "reduced information" approach to generate more firmly based estimates of PPPs, price level indexes, and measures of real (PPP-based) expenditures than conventional extrapolation methods would obtain. The results include PPP-based gross domestic product and its major aggregates of individual consumption expenditure by households and nonprofit institutions serving households, government final consumption expenditure, gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables, and balance of exports and imports.
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Asian Development Bank
Constructing Purchasing Power Parities Using a Reduced Information Approach
A Research Study
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01/2021
Asian Development Bank
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Content
- Cover
- Title
- Copyright
- Contents
- Tables and Figures
- Foreword
- Acknowledgments
- Abbreviations
- 1. Introduction
- The International Comparison Program: Origins and Developments
- ADB's Role in Advancing the International Comparison Program
- About This Research Study: Motivations and Objectives
- Structure of the Report
- 2. Basic Concepts and Key Measures of the International Comparison Program
- Basic Concepts
- Key Measures
- Uses and Applications of Purchasing Power Parities
- Caution in the Use of Purchasing Power Parities
- 3. Framework and Methodology for Compiling Purchasing Power Parities
- Fundamental Decomposition of National Accounts Aggregates
- General Framework of the International Comparison Program
- Compiling Purchasing Power Parities: Data Collection and Validation
- Compiling Purchasing Power Parities: Methods Used by the International Comparison Program
- Compilation of Purchasing Power Parities between Benchmark Cycles: Options
- 4. Methodology and Survey Framework for the Research Study
- Building the Core Product List
- Using the Core List to Estimate Purchasing Power Parities in 2016
- Survey Framework and Coverage for Data Collection in 2016
- Converting Capital-City Prices to National Average Prices for Household Products
- Calculating Purchasing Power Parities for 2016
- 5. Overview of the Study Results
- Gross Domestic Product: Size and Distribution
- Individual Consumption Expenditure by Households
- Actual Individual Consumption by Households
- Government Final Consumption Expenditure
- Gross Fixed Capital Formation
- Comparing 2016 Purchasing Power Parities with Extrapolations from 2011
- Conclusions about the Results
- 6. Conclusions and Moving Forward
- Stability of the Commodity Subsets Selected Using the Combinatorial Approach
- Sensitivity of Factors to Adjust Purchasing Power Parities Derived from the Reduced Information Approach
- Determining the Percentage to Be Sampled
- Bias versus Reliability
- Moving Forward
- Appendixes
- 1. Statistical Tables
- 2. List of Reference Purchasing Power Parities Used
- 3. International Comparison Program Expenditure Classifications Used
- 4. List of Implementing Agencies and Local Currency Units Used
- Glossary
- References
