The major problem with international comparisons of output and productivity levels is finding a suitable conversion factor to express output in a common monetary unit. Commonly used approaches applying purchasing power parities or market exchange rates have important methodological inconveniences. This study on France's and West Germany's manufacturing sector is based on the so-called 'industry-of-origin' method, where producer price ratios are used as conversion factors. These producer price ratios are based on ex-factory unit values for about 240 products corresponding to some 18% of total manufacturing.
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Paper provided by CEPII research center in its series Working Papers with number
1994-10.
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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