Comparison of PPP formulas: Difference between revisions
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| Binary-Fisher<ref name="un-gk" /> || || | | Binary-Fisher<ref name="un-gk" /> || || | ||
|- | |- | ||
| EKS<ref name="un-gk" /> || || | | EKS<ref name="un-gk" /> || Multilateral || | ||
|- | |- | ||
| [[Walsh price index|Walsh]]<ref name="un-gk" /> || || | | [[Walsh price index|Walsh]]<ref name="un-gk" /> || || | ||
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| Young<ref name="diewert-index-numbers">{{cite web |url=https://www.business.unsw.edu.au/research-site/centreforappliedeconomicresearch-site/Documents/E.%20Diewert%20-%20Index%20Numbers.pdf |title=Index Numbers (working paper) |date=December 16, 2006 |journal=Journal of Economic Literature Classification Numbers |author=W. Erwin Diewert |publisher=Centre for Applied Economic Research (The University of New South Wales) |accessdate=November 4, 2017}}</ref> || || | | Young<ref name="diewert-index-numbers">{{cite web |url=https://www.business.unsw.edu.au/research-site/centreforappliedeconomicresearch-site/Documents/E.%20Diewert%20-%20Index%20Numbers.pdf |title=Index Numbers (working paper) |date=December 16, 2006 |journal=Journal of Economic Literature Classification Numbers |author=W. Erwin Diewert |publisher=Centre for Applied Economic Research (The University of New South Wales) |accessdate=November 4, 2017}}</ref> || || | ||
|- | |- | ||
| Sidgwick–Bowley<ref name="diewert-index-numbers" /> || || || || || || Arithmetic mean of Laspeyres and Paasche | | Sidgwick–Bowley<ref name="diewert-index-numbers" /> || Bilateral || || || || || Arithmetic mean of Laspeyres and Paasche | ||
|- | |- | ||
| Fisher ideal<ref name="diewert-index-numbers" /> (same as "Fisher"?) || || | | Fisher ideal<ref name="diewert-index-numbers" /> (same as "Fisher"?) || Bilateral || | ||
|- | |- | ||
| Marshall–Edgeworth<ref name="diewert-index-numbers" />{{rp|7}} || || | | Marshall–Edgeworth<ref name="diewert-index-numbers" />{{rp|7}} || || | ||
|- | |- | ||
| Carli<ref name="diewert-index-numbers" />{{rp|7}} || || 1764 | | Carli<ref name="diewert-index-numbers" />{{rp|7}} || Bilateral || 1764 | ||
|- | |- | ||
| Jevons<ref name="diewert-index-numbers" />{{rp|8}} || || 1865 || | | Jevons<ref name="diewert-index-numbers" />{{rp|8}} || Bilateral || 1865 || | ||
|- | |- | ||
| Törnqvist<ref name="diewert-index-numbers" />{{rp|9}} || || 1936 || | | Törnqvist<ref name="diewert-index-numbers" />{{rp|9}} || Bilateral || 1936 || | ||
|- | |- | ||
| Konüs–Byushgens<ref name="diewert-index-numbers" />{{rp|28}} || || 1926 || | | Konüs–Byushgens<ref name="diewert-index-numbers" />{{rp|28}} || || 1926 || | ||
Revision as of 17:47, 5 November 2017
This page is a comparison of PPP formulas. A PPP formula is used to calculate price matrices.[1]
Comparison table
| Formula name | Type | First publication year | Used in | Superlative? | Additive?[3] | Notes |
|---|---|---|---|---|---|---|
| Laspeyres | Bilateral | |||||
| Paasche | Bilateral | |||||
| GEKS-Fisher | ||||||
| Geary-Khamis | Multilateral | |||||
| Superlative method | I think this is a class of methods defined by Walter Erwin Diewert; they are all the ones that satisfy a list of properties, see [1] | |||||
| Gerardi[3] | EUROSTAT[3] | |||||
| Binary-Fisher[3] | ||||||
| EKS[3] | Multilateral | |||||
| Walsh[3] | ||||||
| Van Yzeren[3] | ||||||
| Exchange rate[3] | ||||||
| Young[4] | ||||||
| Sidgwick–Bowley[4] | Bilateral | Arithmetic mean of Laspeyres and Paasche | ||||
| Fisher ideal[4] (same as "Fisher"?) | Bilateral | |||||
| Marshall–Edgeworth[4]Template:Rp | ||||||
| Carli[4]Template:Rp | Bilateral | 1764 | ||||
| Jevons[4]Template:Rp | Bilateral | 1865 | ||||
| Törnqvist[4]Template:Rp | Bilateral | 1936 | ||||
| Konüs–Byushgens[4]Template:Rp | 1926 |
"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 Gery-Khamis subaggretates be said also to meet the test."[5]
What methods do the following use?
- OECD
- Eurostat
- World Bank
- IDB
chained/chain-linked vs fixed-base versions for each of the above? [2]Template:Rp [3]Template:Rp
I think there's also bilateral vs multilateral versions of the above?
What parameters do each p (price) or q (quantity) variables take? I have seen time period (usually t or n), commodity/basic heading (c or i), country (j).
A lower bound on the number of price indices: "But Walsh (1901) and Fisher (1922) presented hundreds of functional forms for bilateral price indexes".[4] My current understanding is that only a handful are commonly used in practice, perhaps because the others fail to satisfy nice properties.
See also
External links
- Price index (Wikipedia)
- List of price index formulas (Wikipedia)
References
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- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Script error: No such module "citation/CS1".
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 Script error: No such module "citation/CS1".
- ↑ Script error: No such module "citation/CS1".
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