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EKS-S METHOD

Statistics Directorate    
Definition:
The Èltetö-Köves-Szulc-Sergeev method is a variant of the EKS method for calculating PPPs for basic headings that, under certain circumstances, is better able to handle the asymmetry in the number of representative products priced by countries.

Context:
With the EKS method, the Fisher type index is calculated as the geometric mean between two PPPs:

- the PPPs based on products representative in the first country; and

- the PPPs based on products representative in the second country.

Products representative in both countries are used for both PPPs.

With the EKS-S method, the “Fisher type index” between two countries is calculated as the geometric mean of three PPPs:

- the PPPs based on products representative in both countries,

- the PPPs based on products representative in the first country but not the second, and

- the PPPs based on products representative in the second country but not the first.

Symmetry is obtained by giving equal weight in the calculation to the two PPPs that are based on products representative of only one country.

Source Publication:
Eurostat, OECD, 2007, Eurostat-OECD Methodological Manual on Purchasing Power Parities, OECD, Paris – Annex VII, Glossary of terms and abbreviations.

Cross References:
EKS method

Statistical Theme: Prices and purchasing power partities

Created on Thursday, July 12, 2007

Last updated on Thursday, July 26, 2007