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The Country-Product-Dummy Method: A Stochastic Approach to the Computation of Purchasing Power Parities in the ICP

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Abstract

A paper for presentation at the SSHRC Conference on Index Numbers and Productivity Measurement to be held during 30 June � 3 July, 2004 in Vancouver. The author wishes to thank Bettina Aten, Erwin Diewert, Alan Heston, Chris O�Donnell and Marcel Timmer for helpful discussions on the subject matter of this paper.

Suggested Citation

  • D.S. Prasada Rao, 2004. "The Country-Product-Dummy Method: A Stochastic Approach to the Computation of Purchasing Power Parities in the ICP," CEPA Working Papers Series WP032004, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uqcepa:08
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    File URL: https://economics.uq.edu.au/files/5343/WP032004.pdf
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    References listed on IDEAS

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    1. D. S. Prasada Rao, 2005. "On The Equivalence Of Weighted Country‐Product‐Dummy (Cpd) Method And The Rao‐System For Multilateral Price Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 571-580, December.
    2. repec:pri:rpdevs:deaton_pppp_version_aug_06 is not listed on IDEAS
    3. Chen, Yi Vivian & Heston, Alan & Lipsey, Robert, 2000. "International and interarea comparisons of income, output and prices," Journal of Asian Economics, Elsevier, vol. 11(3), pages 363-364, December.
    4. Erwin Diewert, 2005. "Weighted Country Product Dummy Variable Regressions And Index Number Formulae," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 561-570, December.
    5. Angus Deaton & Jed Friedman & Vivi Alatas, 2004. "Purchasing power parity exchange rates from household survey data: India and Indonesia," Working Papers 173, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    6. Hill, R., 1995. "Chained PPPs and Minimum Spanning Trees," Papers 95/40, New South Wales - School of Economics.
    7. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    9. Selvanathan, E. A. & Prasada Rao, D. S., 1992. "An econometric approach to the construction of generalized Theil-Tornqvist indices for multilateral comparisons," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 335-346.
    10. repec:pri:rpdevs:deaton_pppp_version_aug_06.pdf is not listed on IDEAS
    11. Clements, Kenneth W & Izan, H Y, 1981. "A Note on Estimating Divisia Index Numbers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(3), pages 745-747, October.
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