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Does PPP-adjusted data exaggerate the relative size of poor economies?

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  • Patrick Honohan

Abstract

Though excellent for comparing living standards, conventional PPP-adjusted real income measures may be a poor basis for ranking economies by total size. They assign a far larger share of World output to poor countries than would a more relevant alternative based on valuing output using the equilibrium prices of an hypothetical world of full economic integration.

Suggested Citation

  • Patrick Honohan, 2001. "Does PPP-adjusted data exaggerate the relative size of poor economies?," Applied Economics Letters, Taylor & Francis Journals, vol. 8(12), pages 799-802.
  • Handle: RePEc:taf:apeclt:v:8:y:2001:i:12:p:799-802
    DOI: 10.1080/13504850110046480
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    Cited by:

    1. 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.
    2. Jean-Louis Warnholz (QEH), "undated". "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.
    3. 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.

    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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