IDEAS home Printed from
   My bibliography  Save this paper

Comment on Understanding PPPs and PPP Based National Accounts


  • Diewert, Erwin


The paper discusses the three major problems that Deaton and Heston identify that make it difficult to construct consistent estimates of real output across countries: (i) the choice of a multilateral index number formula; (ii) weak national accounts estimates of country expenditures on the 155 major expenditure categories that are identified in the World Bank’s International Comparison Program and (iii) the fact that countries at different levels of development consume products that are not consumed widely by other countries in the comparison and thus the country price levels that are determined in the comparison project may not be reliable.

Suggested Citation

  • Diewert, Erwin, 2010. "Comment on Understanding PPPs and PPP Based National Accounts," Economics working papers erwin_diewert-2010-9, Vancouver School of Economics, revised 13 Jul 2010.
  • Handle: RePEc:ubc:bricol:erwin_diewert-2010-9

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ubc:bricol:erwin_diewert-2010-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maureen Chin). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.