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Does PPP-Adjusted Data Exaggerate the Relative Size of Poor Economies

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  • Honohan, Patrick

Abstract

Conventional PPP-adjusted real output measures, invaluable for making international comparisons of living standards, may greatly exaggerate the productive capacity of poor countries. The equilibrium prices of an hypothetical world of full economic integration provide an instructive basis for evaluating the potential share of different countries in world output.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1865.

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Date of creation: Apr 1998
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Handle: RePEc:cpr:ceprdp:1865

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Keywords: Developing Countries; Purchasing Power Parity; world distribution of income;

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Cited by:
  1. Fischer, Christoph, 2007. "An assessment of the trends in international price competitiveness among EMU countries," Discussion Paper Series 1: Economic Studies 2007,08, Deutsche Bundesbank, Research Centre.
  2. Jean-Pierre Dormois, 2006. "Tracking the elusive French productivity lag in industry 1840-1973," Hi-Stat Discussion Paper Series d05-152, Institute of Economic Research, Hitotsubashi University.
  3. Jean-Louis Warnholz (QEH), . "Poverty Reduction for Profit? A Critical Examination of Business Opportunities at the Bottom of the Pyramid," QEH Working Papers qehwps160, Queen Elizabeth House, University of Oxford.

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