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New Methodological Developments For The International Comparison Program

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  • Erwin Diewert

Abstract

The paper explains new methodology that was used in the 2005 International Comparison Program (ICP) that compared the relative price levels and GDP levels across 146 countries. In this round of the ICP, the world was divided into six regions: OECD, CIS, Africa, South America, Asia Pacific, and West Asia. What is new in this round compared to previous rounds of the ICP is that each region was allowed to develop its own product list and collect prices on this list for countries in the region. The regions were then linked using another separate product list; 18 countries across the six regions collected prices for products on this list and this information was used to link prices and quantities across the regions. An additional complication was that the final linking of prices and volumes across regions had to respect the regional price and volume measures that were (separately) constructed by the regions. The paper also studies the properties of the Iklé-Dikhanov-Balk multilateral system of index numbers which was used by Africa. Copyright 2010 The Author. Journal compilation International Association for Research in Income and Wealth 2010.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 56 (2010)
Issue (Month): s1 (06)
Pages: S11-S31

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Handle: RePEc:bla:revinw:v:56:y:2010:i:s1:p:s11-s31

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Cited by:
  1. Angus Deaton & Alan Heston, 2008. "Understanding PPPs and PPP-based national accounts," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies. 1120, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  2. Meade, Birgit & Regmi, Anita & Seale, James L. Jr & Muhammad, Andrew, 2014. "New International Evidence on Food Consumption Patterns: A Focus on Cross-Price Effects Based on 2005 International Comparison Program Data," Technical Bulletins, United States Department of Agriculture, Economic Research Service 165687, United States Department of Agriculture, Economic Research Service.
  3. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, Elsevier, vol. 161(1), pages 1-5, March.

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