IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v49y2003i4p491-511.html
   My bibliography  Save this article

Purchasing Power Parities for Industry Comparisons Using Weighted Elteto–Koves–Szulc (EKS) Methods

Author

Listed:
  • D. S. Prasada Rao
  • Marcel P. Timmer

Abstract

This study has three main objectives. First, it develops a generalization of the commonly used EKS method to multilateral price comparisons. It is shown that the EKS system can be generalized so that weights can be attached to each of the link comparisons used in the EKS computations. These weights can account for differing levels of reliability of the underlying binary comparisons. Second, various reliability measures and corresponding weighting schemes are presented and their merits discussed. Finally, these new methods are applied to an international data set of manufacturing prices from the ICOP project. Although theoretically superior, it appears that the empirical impact of the weighted EKS method is generally small compared to the unweighted EKS. It is also found that this impact is larger when it is applied at lower levels of aggregation. Finally, the importance of using sector specific PPPs in assessing relative levels of manufacturing productivity is indicated.

Suggested Citation

  • D. S. Prasada Rao & Marcel P. Timmer, 2003. "Purchasing Power Parities for Industry Comparisons Using Weighted Elteto–Koves–Szulc (EKS) Methods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 491-511, December.
    • Handle: RePEc:bla:revinw:v:49:y:2003:i:4:p:491-511
    DOI: 10.1111/j.0034-6586.2003.00101.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0034-6586.2003.00101.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.0034-6586.2003.00101.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sebastian Weinand, 2022. "Measuring spatial price differentials at the basic heading level: a comparison of stochastic index number methods," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 106(1), pages 117-143, March.
    2. Johannes Van Biesebroeck, 2009. "Disaggregate productivity comparisons: sectoral convergence in OECD countries," Journal of Productivity Analysis, Springer, vol. 32(2), pages 63-79, October.
    3. Peluffo Adriana & Scasso Juan, 2023. "The Role of Trade Partners on Product Quality: The case of Uruguay," Asociación Argentina de Economía Política: Working Papers 4681, Asociación Argentina de Economía Política.
    4. Jan Nevima & Ingrid Majerová, 2015. "Application of ß – Convergence Approach in Visegrad Four Regions," Working Papers 0004, Silesian University, School of Business Administration.
    5. Daniel Melser & Michael Webster, 2021. "Multilateral Methods, Substitution Bias, and Chain Drift: Some Empirical Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 759-785, September.
    6. Hill, Robert J. & Timmer, Marcel P., 2006. "Standard Errors as Weights in Multilateral Price Indexes," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 366-377, July.
    7. repec:dgr:rugggd:200473 is not listed on IDEAS
    8. Chihiro Shimizu & Erwin Diewert, 2023. "Scanner Data, Product Churn and Quality Adjustment," Working Papers e185, Tokyo Center for Economic Research.
    9. Ludwig Auer, 2012. "Räumliche Preisvergleiche: Aggregationskonzepte und Forschungsperspektiven," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 6(1), pages 27-56, December.
    10. Inklaar Robert & Timmer Marcel P. & Ark Bart van, 2007. "Mind the Gap! International Comparisons of Productivity in Services and Goods Production," German Economic Review, De Gruyter, vol. 8(2), pages 281-307, May.
    11. Weinand, Sebastian, 2020. "Measuring spatial price differentials: A comparison of stochastic index number methods," Discussion Papers 12/2020, Deutsche Bundesbank.
    12. repec:dgr:rugggd:gd-89 is not listed on IDEAS
    13. Daniel Melser, 2013. "Multilateral index number theory and generalized repeat sales house price indexes," Applied Economics Letters, Taylor & Francis Journals, vol. 20(8), pages 786-789, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:49:y:2003:i:4:p:491-511. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.