Comparison of PPP formulas - Revision history

Issa Rice: /* See also */

2017-11-12T18:13:47Z

Issa Rice: /* Notes/scratch work */

2017-11-11T20:02:18Z

Notes/scratch work

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	==Notes/scratch work==		==Notes/scratch work==

	"Four multilateral methods are considered in detail: (1) Walsh, (2) EKS, (3) Van Yzeren, and (4) Geary-Khamis. Each method goes beyond the binary procedures of Chapter 4 by drawing upon price and quantity data of all countries simultaneously in aggregating up from the category level. They all are base country invariant, and have the transitivity property, and can be adapted to a form that gives additive consistency. The EKS method meets the factor-reversal test. The Geary-Khamis method also satisfies the test at the GDP level. Only in a purely definitional sense (that is, by deriving either the PPPs or the quantity index indirectly) can the Walsh and Van Yzeren methods and the Geary-Khamis subaggretates be said also to meet the test."<ref>{{cite web \|url=http://documents.worldbank.org/curated/en/199981467988893189/pdf/multi-page.pdf \|title=World Bank Document - multi-page.pdf \|accessdate=November 3, 2017}}</ref>		{{quotation\|Four multilateral methods are considered in detail: (1) Walsh, (2) EKS, (3) Van Yzeren, and (4) Geary-Khamis. Each method goes beyond the binary procedures of Chapter 4 by drawing upon price and quantity data of all countries simultaneously in aggregating up from the category level. They all are base country invariant, and have the transitivity property, and can be adapted to a form that gives additive consistency. The EKS method meets the factor-reversal test. The Geary-Khamis method also satisfies the test at the GDP level. Only in a purely definitional sense (that is, by deriving either the PPPs or the quantity index indirectly) can the Walsh and Van Yzeren methods and the Geary-Khamis subaggretates be said also to meet the test.<ref>{{cite web \|url=http://documents.worldbank.org/curated/en/199981467988893189/pdf/multi-page.pdf \|title=World Bank Document - multi-page.pdf \|accessdate=November 3, 2017}}</ref>}}

	What methods do the following use?		What methods do the following use?

Issa Rice: /* General comparison */

2017-11-10T03:35:33Z

General comparison

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	\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|		\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|
	\|-		\|-
	\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /><ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\| \|\| ~~OECD~~, ~~Eurostat~~<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>{{rp\|235}}		\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /><ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\| \|\| OECD–Eurostat (a variant with representativity, sometimes called GEKS*)<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>{{rp\|235}}
	\|-		\|-
	\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|		\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|

Issa Rice: /* General comparison */

2017-11-10T03:27:38Z

General comparison

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	\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|		\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|
	\|-		\|-
	\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /><ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\| \|\| OECD, Eurostat<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>		\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /><ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\| \|\| OECD, Eurostat<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>{{rp\|235}}
	\|-		\|-
	\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|		\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|

Issa Rice: /* General comparison */

2017-11-10T03:25:07Z

General comparison

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	\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|		\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|
	\|-		\|-
	\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /> \|\| Multilateral \|\| \|\| OECD, Eurostat<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>		\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /><ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\| \|\| OECD, Eurostat<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>
	\|-		\|-
	\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|		\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|
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	\|-		\|-
	\| Plutocratic weights method<ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\|		\| Plutocratic weights method<ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\|
	\|-
	~~\| GEKS<ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\|~~
	\|-		\|-
	\| Own share method<ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\|		\| Own share method<ref name="diewert-index-numbers" />{{rp\|33}} \|\| Multilateral \|\|

Issa Rice: /* General comparison */

2017-11-10T03:23:56Z

General comparison

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	\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|		\| Binary-Fisher<ref name="un-gk" /> \|\| \|\|
	\|-		\|-
	\| EKS<ref name="un-gk" /> \|\| Multilateral \|\|		\| Gini–Eltetö–Köves–Szulc (GEKS, sometimes just EKS)<ref name="un-gk" /> \|\| Multilateral \|\| \|\| OECD, Eurostat<ref>{{cite web \|url=https://www.oecd.org/std/prices-ppp/13-3012041ec015.pdf \|title=Eurostat-OECD Methodological Manual on Purchasing Power Parities - Calculation and aggregation of PPPs \|publisher=OECD/Eurostat \|year=2012 \|accessdate=November 10, 2017}}</ref>
	\|-		\|-
	\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|		\| [[Walsh price index\|Walsh]]<ref name="un-gk" /> \|\| \|\|

Issa Rice at 04:07, 9 November 2017

2017-11-09T04:07:32Z

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	\| Iklé method<ref name="balk-2001" />{{rp\|16}} \|\| Multilateral \|\| 1972		\| Iklé method<ref name="balk-2001" />{{rp\|16}} \|\| Multilateral \|\| 1972
	\|-		\|-
	\| Iklé–Dikhanov–Balk (IDB)<ref>{{cite web \|url=http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1291755426408/05_ICPBOOK_AggregationAboveBH_Final.pdf \|title=~~MEASURING THE SIZE OF THE WORLD ECONOMY~~ - 05_ICPBOOK_AggregationAboveBH_Final.pdf \|accessdate=November 9, 2017}}</ref> \|\|		\| Iklé–Dikhanov–Balk (IDB)<ref name="diewert-2011-methods">{{cite web \|url=http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1291755426408/05_ICPBOOK_AggregationAboveBH_Final.pdf \|title=Measuring the Size of the World Economy - Chapter 5: Methods of Aggregation above the Basic Heading Level within Regions \|author=W. Erwin Diewert \|year=2011 \|archiveurl=https://web.archive.org/web/20171109004616/http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1291755426408/05_ICPBOOK_AggregationAboveBH_Final.pdf \|archivedate=November 9, 2017 \|dead-url=no \|accessdate=November 9, 2017}}</ref>{{rp\|3}} \|\| 1972<ref name="diewert-2011-methods" />{{rp\|9}} \|\| Multilateral \|\| Africa region of ICP 2005<ref name="diewert-2011-methods" />{{rp\|3}} \|\|
			\|-
			\| Neary's GAIA system<ref name="diewert-2011-methods" />{{rp\|19}} \|\| Multilateral \|\| 2004 \|\| \|\| This method "allows for nonhomothetic preferences on the part of final demanders" but "uses a single set of relative prices to value consumption or the gross domestic product (GDP) in all countries, no matter how different are the actual relative prices in each country".<ref name="diewert-2011-methods" />{{rp\|19}}
			\|-
			\| Minimum spanning tree (MST)<ref name="diewert-2011-methods" /> \|\|
	\|}		\|}

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	\|-		\|-
	\| Geary–Khamis \|\| \|\| \|\| Yes \|\| \|\| \|\| \|\| Yes (strongly)<ref name="balk-2001">{{cite web \|url=https://www.oecd.org/std/prices-ppp/2424931.pdf \|first=Bert M. \|last=Balk \|date=June 15, 2001 \|title=Aggregation Methods in International Comparisons: What Have We Learned? \|archiveurl=https://web.archive.org/web/20171108203336/https://www.oecd.org/std/prices-ppp/2424931.pdf \|archivedate=November 8, 2017 \|dead-url=no \|accessdate=November 8, 2017}}</ref>{{rp\|13}}		\| Geary–Khamis \|\| \|\| \|\| Yes \|\| \|\| \|\| \|\| Yes (strongly)<ref name="balk-2001">{{cite web \|url=https://www.oecd.org/std/prices-ppp/2424931.pdf \|first=Bert M. \|last=Balk \|date=June 15, 2001 \|title=Aggregation Methods in International Comparisons: What Have We Learned? \|archiveurl=https://web.archive.org/web/20171108203336/https://www.oecd.org/std/prices-ppp/2424931.pdf \|archivedate=November 8, 2017 \|dead-url=no \|accessdate=November 8, 2017}}</ref>{{rp\|13}}
			\|-
			\| Iklé–Dikhanov–Balk \|\| \|\| \|\| \|\| \|\| \|\| \|\| Yes<ref name="diewert-2011-methods" />{{rp\|3}}
	\|}		\|}

Issa Rice: /* General comparison */

2017-11-09T00:41:54Z

General comparison

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	\|-		\|-
	\| Iklé method<ref name="balk-2001" />{{rp\|16}} \|\| Multilateral \|\| 1972		\| Iklé method<ref name="balk-2001" />{{rp\|16}} \|\| Multilateral \|\| 1972
			\|-
			\| Iklé–Dikhanov–Balk (IDB)<ref>{{cite web \|url=http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1291755426408/05_ICPBOOK_AggregationAboveBH_Final.pdf \|title=MEASURING THE SIZE OF THE WORLD ECONOMY - 05_ICPBOOK_AggregationAboveBH_Final.pdf \|accessdate=November 9, 2017}}</ref> \|\|
	\|}		\|}

Issa Rice: /* Notes/scratch work */

2017-11-08T23:35:44Z

Notes/scratch work

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	A bilateral/binary index works just as well for locations as time periods. You just need as inputs two price vectors and two quantity vectors (where the coordinates are the different goods). The two price vectors can be two periods or two countries.		A bilateral/binary index works just as well for locations as time periods. You just need as inputs two price vectors and two quantity vectors (where the coordinates are the different goods). The two price vectors can be two periods or two countries.

	Balk lists the following multilateral methods: GEKS, Van IJzeren, Gerardi, WFBS (weighted Fisher blended system), WDOS (Diewert's Own Share system), YKS (Kurabayashi and Sakuma), Q-YKS, GK, EWGK (equally weighted GK method), KS-S (Kurabayashi and Sakuma), SRK (Sakuma, Rao, and Kurabayashi), Sergueev, Gerardi, ~~Ikle~~, Rao.<ref name="balk-2001" />		Balk lists the following multilateral methods: GEKS, Van IJzeren, Gerardi, WFBS (weighted Fisher blended system), WDOS (Diewert's Own Share system), YKS (Kurabayashi and Sakuma), Q-YKS, GK, EWGK (equally weighted GK method), KS-S (Kurabayashi and Sakuma), SRK (Sakuma, Rao, and Kurabayashi), Sergueev, Gerardi, Iklé, Rao.<ref name="balk-2001" />

	One taxonomy of multilateral indices is given by Hill.<ref>{{cite web \|url=http://www.roiw.org/1997/49.pdf \|author=Robert J. Hill \|title=A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities \|journal=Review of Income and Wealth \|date=March 1997 \|accessdate=November 8, 2017}}</ref>		One taxonomy of multilateral indices is given by Hill.<ref>{{cite web \|url=http://www.roiw.org/1997/49.pdf \|author=Robert J. Hill \|title=A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities \|journal=Review of Income and Wealth \|date=March 1997 \|accessdate=November 8, 2017}}</ref>

Issa Rice: /* Notes/scratch work */

2017-11-08T23:32:27Z

Notes/scratch work

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	Balk lists the following multilateral methods: GEKS, Van IJzeren, Gerardi, WFBS (weighted Fisher blended system), WDOS (Diewert's Own Share system), YKS (Kurabayashi and Sakuma), Q-YKS, GK, EWGK (equally weighted GK method), KS-S (Kurabayashi and Sakuma), SRK (Sakuma, Rao, and Kurabayashi), Sergueev, Gerardi, Ikle, Rao.<ref name="balk-2001" />		Balk lists the following multilateral methods: GEKS, Van IJzeren, Gerardi, WFBS (weighted Fisher blended system), WDOS (Diewert's Own Share system), YKS (Kurabayashi and Sakuma), Q-YKS, GK, EWGK (equally weighted GK method), KS-S (Kurabayashi and Sakuma), SRK (Sakuma, Rao, and Kurabayashi), Sergueev, Gerardi, Ikle, Rao.<ref name="balk-2001" />

	One taxonomy of multilateral indices is ~~give~~ by Hill.<ref>{{cite web \|url=http://www.roiw.org/1997/49.pdf \|author=Robert J. Hill \|title=A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities \|journal=Review of Income and Wealth \|date=March 1997 \|accessdate=November 8, 2017}}</ref>		One taxonomy of multilateral indices is given by Hill.<ref>{{cite web \|url=http://www.roiw.org/1997/49.pdf \|author=Robert J. Hill \|title=A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities \|journal=Review of Income and Wealth \|date=March 1997 \|accessdate=November 8, 2017}}</ref>

	==See also==		==See also==

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	==See also==		==See also==

			* [[Intertemporal versus interspatial comparison]]

	==External links==		==External links==