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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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D.S. Prasada Rao () (CEPA - School of Economics, The University of Queensland)

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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.

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Paper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP032004.

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Date of creation: Jun 2004
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Handle: RePEc:qld:uqcepa:08

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  1. Erwin Diewert, 2005. "Weighted Country Product Dummy Variable Regressions And Index Number Formulae," Review of Income and Wealth, Blackwell Publishing, vol. 51(4), pages 561-570, December. [Downloadable!] (restricted)
  2. Hill, R., 1995. "Chained PPPs and Minimum Spanning Trees," Papers 95/40, New South Wales - School of Economics.
  3. 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. [Downloadable!] (restricted)
  4. 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.. [Downloadable!]
  5. 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, Blackwell Publishing, vol. 51(4), pages 571-580, December. [Downloadable!] (restricted)
  6. 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 745-47, October. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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