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PAASCHE TYPE PPP

Statistics Directorate    
Definition:
A PPP for a basic heading or an aggregate between two countries, country B and country A, where the reference country is country A and the weights are those of country B.

Context:
At the basic heading level, the PPP is defined as a quasi-weighted geometric average of the price relatives between country B and country A for the products representative of country B. At an aggregate level, the PPP is defined as the weighted harmonic average of the PPPs between country B and country A for the basic headings covered by the aggregate with the expenditure shares of country B being used as weights.

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

Cross References:
Laspeyres type PPP

Statistical Theme: Prices and purchasing power partities

Created on Thursday, July 12, 2007

Last updated on Thursday, July 12, 2007