Intertemporal versus interspatial comparison

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The following table examines intertemporal versus interspatial comparison in PPP calculation/index number theory. In particular, aspects of intertemporal comparisons have counterparts in interspatial comparisons, so the table catalogs these.

Comparison table

Aspect Intertemporal Interspatial
How well the weights match the thing being compared[1]:19 Up-to-dateness Characteristicity
Tendency of Paasche quantity indices to be lower than Laspeyres indices[2]:75 Gerschenkron effect Own-weight effect
Ordering Natural ordering by year (or other granularity of time periods) No natural ordering (but some have devised orderings, e.g. an approach where structurally similar countries are compared to each other)[1]:32
The thing against which other things are compared Base year Numéraire country
Symmetry in treatment of the base Time-reversal test Country reversal test (bilateral) or base-country invariance (multilateral)[2]:71–72

See also

External links


  1. 1.0 1.1 Drechsler, László (March 1973). "Weighting of index numbers in multilateral international comparisons". Review of income and wealth. Retrieved November 12, 2017. 
  2. 2.0 2.1 Kravis, Irving B.; Heston, Alan; Summers, Robert (1982). "World Product and Income: International Comparisons of Real Gross Product (United Nations International Comparison Project Phase III)" (PDF). Johns Hopkins University Press. Retrieved November 5, 2017.