
	Where results make sense

Topic: Purchasing power parity

Related Topics

Discussion and clarification of PPP

Exchange rate

Big Mac index

Penn effect

Law of one price

Gross domestic product

International dollar

Measures of national income

List of countries by GDP

List of countries by GDP (PPP) per capita

In the News (Sun 22 Nov 09)

Northern Trust

Marvin Harrison

Peter Chernin

Gary Locke

Match Play

Penelope Cruz

Mickey Rourke

AR Rahman

Danny Boyle

Hugh Jackman

	Purchasing Power Parity - Best-Ranks.com
		Purchasing power parity is an economic technique used when attempting to determine the relative values of two currencies.
		Purchasing power parity solves this problem by taking some international measure and determining the cost for that measure in each of the two currencies, then comparing that amount.
		One of the primary uses of purchasing power parity is in lessening the misleading effects of shifts in a national currency.
	www.best-ranks.com /purchasing_power_parity.htm (391 words)

	Purchasing power parity - Wikipedia, the free encyclopedia
		In economics, purchasing power parity (PPP) is the method of using the long-run equilibrium exchange rate of two currencies to equalize the currencies' purchasing power.
		PPP is frequently misused to assert that China is the world's second largest economy, but such a calculation would be invalid under the PPP theory.
		PPP calculations are often used to measure poverty rates.
	en.wikipedia.org /wiki/Purchasing_power_parity (2557 words)

	Introduction to Purchasing Power Parity (PPP)
		This contrast with the interest rate parity theory which assumes that the actions of investors, whose transactions are recorded on the capital account, induces changes in the exchange rate.
		PPP theory is based on an extension and variation of the "law of one price" as applied to the aggregate economy.
		The purchasing power parity theory is really just the law of one price applied in the aggregate, but, with a slight twist added (more on the twist a bit later).
	internationalecon.com /v1.0/Finance/ch30/F30-1.html (1039 words)

	A Cointegration Analysis of Purchasing Power Parity: 1973-96
		The theory of purchasing power parity (PPP) is relatively simple and straightforward, and amounts to nothing more than applying the law of one price to a comparable market basket of goods and services across countries.
		The countries chosen to test PPP were Germany, the United Kingdom, Japan, Canada, and France (the U.S. dollar was used as the common currency in all exchange rates).
		In the case of the PPP ratio, the estimated coefficients in four cases are of the wrong sign.
	www.iaes.org /journal/iaer/aug_99/ramirez (5249 words)

	Purchasing power parity (via CobWeb/3.1 planet03.csc.ncsu.edu) (Site not responding. Last check: 2007-10-07)
		In economics, purchasing power parity (PPP) is a method used to calculate an alternative exchange rate between the currencies of two countries.
		PPP exchange rates are used in international comparisons of standard of living.
		Because of a difference in the perceived "purchasing power parity" within some of the regions using the CFA franc, their purchasing power parity exchange rate differed like this (lower is stronger parity): Cameroon 240, Central African Republic 166, Chad 172, Republic of the Congo 677, Equatorial Guinea 114, Gabon 413, Benin 273, Burkina Faso 167.
	purchasing-power-parity.iqnaut.net.cob-web.org:8888 (1106 words)

	Purchasing Power Parity
		The purchasing power parity (PPP) exchange rate, which is usually considered to be the best for the purpose, is defined as the amount of foreign currency that would allow you to buy the same quantity of goods in foreign country which you can buy for one dollar in the USA.
		He concludes that the PPP exchange rate is 20 Czech crowns per dollar and demands that exchange rate from the Czech friends.
		PPP is not unique, it depends on relative prices and on the composition of consumer basket.
	www.bu.edu /econ/faculty/kyn/newweb/economic_systems/Lecture_notes/len_ppp1.htm (1292 words)

	Purchasing Power Parity (Site not responding. Last check: 2007-10-07)
		Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
		The simplest way to calculate purchasing power parity between two countries is to compare the price of a "standard" good that is in fact identical across countries.
		The PPP estimates are taken from studies carried out by the Organization of Economic Cooperation and Development (OECD) and others; however, they should not be taken as "definitive".
	fx.sauder.ubc.ca /PPP.html (1037 words)

	Data - Quick Reference Tables
		Purchasing power parity (PPP) conversion factors take into account differences in the relative prices of goods and services—particularly non-tradables—and therefore provide a better overall measure of the real value of output produced by an economy compared to other economies.
		PPP GNI is measured in current international dollars which, in principal, have the same purchasing power as a dollar spent on GNI in the U.S. economy.
		Because PPPs provide a better measure of the standard of living of residents of an economy, they are the basis for the World Bank’s calculations of poverty rates at $1 and $2 a day.
	web.worldbank.org /WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20399244~menuPK:1504474~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html (974 words)

	Purchasing Power Parity
		PPP is an formula designed to determine the "appropriate" exchange rate between two highly similar economies.
		PPP measures the comparative cost of a basket of urban consumer goods (not services), which might represent something on the order of 15-25% of a typical economy's GDP.
		Bottom line: no one is going to accept a billion PPPs rather than one unit of any currency in the world.
	www.centurychina.com /plaboard/posts/3666494.shtml (161 words)

	Purchasing power parity (via CobWeb/3.1 planet03.csc.ncsu.edu) (Site not responding. Last check: 2007-10-07)
		PPP exchange rates are among the tools used in international comparisons of standard of living.
		PPP is a theoretical exchange rate derived from the perceived parity of purchasing power of a currency in relation to another currency.
		In contrast to the "real" exchange rate that the currencies are traded for in the official market (as opposed to the fl market), the PPP exchange rate is calculated from the relative value of a currency based on the amount of a "basket" of goods the currency will buy in its nation of usage.
	purchasing-power-parity.kiwiki.homeip.net.cob-web.org:8888 (1121 words)

	Purchasing Services
		FHDA departments wanting to know whether their Purchasing Requisition has been received by Purchase Services or to otherwise learn about the status of a particular Purchase Requisition, please click on Requisition Tracking System.
		Purchase Requisitons, Stores, and Requisitions forms are not available online, but they can be purchased from the District Warehouse.
		You may click on Purchasing Deadlines to obtain information about due dates for Purchase Requisitions that you want to charge to the current fiscal year budget.
	purchasing.fhda.edu (612 words)

	Purchasing Power Parities (PPP):About (Site not responding. Last check: 2007-10-07)
		PPPs are calculated mainly using data collected specifically for the purpose.
		Since 1990, PPPs have been calculated every three years for Member Countries of the OECD - 1993, 1996, 1999 and 2002 - and annually for EU countries.
		The OECD has prepared a Statistics in Brief, Issue 3, March 2002: Purchasing power parities - measurement and uses that gives some guidance concerning the use and interpretation of GDP comparisons based on PPP data.
	www.oecd.org /about/0,2337,en_2649_34357_1_1_1_1_1,00.html (337 words)

	International Economics Glossary: P
		Implies that the rate of depreciation of a currency must equal the difference between its inflation rate and the inflation rate in the currency to which it is being compared.
		Since the purchasing power parity theory is rarely correct, this contrasts with the nominal exchange rate.
		A theory of the exchange rate that the rate will adjust to achieve purchasing power parity, in either its absolute or its relative form.
	www-personal.umich.edu /~alandear/glossary/p.html (4077 words)

	Purchasing power - Wikipedia, the free encyclopedia
		As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people.
		Falling purchasing power can thus be part of inflation.
		The formula for purchasing power is extremely complex.
	en.wikipedia.org /wiki/Purchasing_power (155 words)

	Food for Thought: The Big Mac Index - - CFO.com
		The theory of purchasing-power parity says that in the long run exchange rates should move towards rates that would equalise the prices of an identical basket of goods and services in any two countries.
		The Big Mac PPP is the exchange rate that would leave a burger in any country costing the same as in America.
		Dividing this by the American price of $2.90 produces a dollar PPP against the yen of ¥ 90, compared with its current rate of ¥ 113, suggesting that the yen is 20% undervalued.
	www.cfo.com /article.cfm/3014203?f=home_todayinfinance (781 words)

	Purchasing Power Parities (PPP):Department (Site not responding. Last check: 2007-10-07)
		Purchasing Power Parities (PPPs) are currency conversion rates that both convert to a common currency and equalise the purchasing power of different currencies.
		Download the latest OECD statistics on purchasing power parities and comparative price levels.
		The March 2002 issue of the Statistics Brief gives an overview of the measurement and the uses of PPPs.
	www.oecd.org /std/ppp (84 words)

	Per Capita GNP versus Parity Purchasing Power
		On its part, PPP is based on a theory, which states the exchange rate between two currencies adjusts - over a long term - to relative price levels (to purchasing the same category of goods or services in different countries).
		One is entitled to question the representativeness of PPP to "benchmarking" the purchasing power of a developing country's citizen - not to speak of the alleged "welfare" measuring.
		The only truth conveyed by PPP is that a tourist (from a developed country) when visiting a developing one enjoys a higher standard of living than he may not afford in his own country.
	businessafrica.net /africabiz/arcvol1/email59.php (1454 words)

	Purchasing Power Parity (Site not responding. Last check: 2007-10-07)
		But here's all you need to remember: based on the two measuring sticks for evaluating currencies (namely, purchasing power parity), the dollar is poised for a drop in value.
		This can have a significant impact on you as an investor, as your purchasing power will be reduced.
		For a more detailed definition of Purchasing Power Parity (PPP), visit the Investment U Glossary.
	www.investmentu.com /IUEL/2003/20030102.html (1210 words)

	Purchasing Power Parity (PPP) (Site not responding. Last check: 2007-10-07)
		PPP suggests that the purchasing power of a consumer will be similar when purchasing goods in a foreign country or in the home country.
		If inflation in the foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal purchasing power.
		According to PPP, currencies in highly-inflated countries will be weaker causing the purchasing power of goods in the home country versus these countries to be similar.
	www.bsu.edu /classes/rrathina/course/unit3_6.htm (189 words)

	FXBigMac - World economics based on the hamburger standard
		Purchasing Power Parity (PPP): is a measure of the relative purchasing power of different currencies.
		It is measured by the price of the same goods in different countries, translated by the FX rate (or exchange rate) of that country's currency against a "base currency".
		If the actual exchange rate is higher, then the BigMac theory says that you should expect the value of the Euro to go down until it reaches the PPP exchange rate.
	www.oanda.com /products/bigmac/bigmac.shtml (260 words)

	7. Basic economic indicators: Purchasing power parity
		Recently, it has become possible to compare national currencies based on purchasing power parity (PPP)--in effect, how much of a common "market basket" of goods and services each currency can purchase locally, including goods and services that are not traded internationally.
		Consider, for example, the standard of living as measured by average per capita GDP in Japan and the United States.
		(See Data Table 7.1.) Nonetheless, these PPP figures also indicate that China's economy is already much larger than conventional GDP figures suggest--larger than that of Germany and nearly as large as that of Japan.
	pubs.wri.org /pubs_content_text.cfm?ContentID=823 (531 words)

	Finance/Actuarial Learning Curve Blog: Purchasing Power Parity in Big Macs (via CobWeb/3.1 planet03.csc.ncsu.edu) (Site not responding. Last check: 2007-10-07)
		The index measures Purchasing Power Parity of different countries using Big Macs as the basket of goods.
		Purchasing power parity is the measure of relative purchasing power of different currencies.
		The PPP of different countries is computed by taking a ratio of the price in, say Canadian Dollars in Toronto, to the price in US Dollars in New York.
	fantonim.blogspot.com.cob-web.org:8888 /2005/03/purchasing-power-parity-in-big-macs.html (320 words)

	SSRN-Does Purchasing Power Parity Work? by Michael Darby
		The logarithm of the purchasing power ratio (PPR) is shown for seven countries and three alternative price indices to follow a stationary and invertible process in the first differences.
		This means that permanent shifts in the parity value accumulate over time.
		Therefore, as the prediction interval lengthens, the variance of the level of the PPR goes towards infinity while the variance of its average growth rate goes to zero.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=275366 (378 words)

	SSRN-References Cited 'Purchasing Power Parity - Evidence From a New Panel Test' by David Allen, Stuart Cruickshank, ... (Site not responding. Last check: 2007-10-07)
		Hakkio, C. (1984) "A Re-examination of Purchasing Power Parity: A Multi-period and Multi-country Study", Journal of International Economics, 17, pp.
		OConnell, P. (1998a) "The Overvaluation of Purchasing Power Parity", Journal of International Economics, 44, pp.
		Rogoff, K. (1996) "The Purchasing Power Parity Puzzle", The Journal of Economic Literature, 34, pp.
	papers.ssrn.com /sol3/RefUsedIn.cfm?abid=241710 (1105 words)

	NationMaster - Statistics > GDP > PPP by country
		Purchasing Power Parity (PPP) in Millions of International Dollars, 2004.
		DEFINITION: Purchasing Power Parity (PPP) in Millions of International Dollars, 2004.
		Is there a way (or a better source) to isolate data that would answer, for example, the following question: "What percentage of the world's people make less than $10,000 per year?" I think this would be a powerful tool in illustrating to people in the developed world just how "rich" they are as humans go.
	www.nationmaster.com /graph-T/eco_gdp_ppp (327 words)

	Purchasing Power Parity Based on Capital Account, Exchange Rate Volatility and Cointegration: Evidence from Some ... (Site not responding. Last check: 2007-10-07)
		PPP has been used as a theory of domestic price determination under fixed exchange rate regime and a theory of exchange rate determination under flexible exchange rate regime.
		An important feature of the study is that test of PPP which relies on capital account is also carried out.
		PPP is not supported even if we rely on capital account in derivation of PPP.
	ideas.repec.org.cob-web.org:8888 /a/eaa/aeinde/v5y2005i3_6.html (408 words)

Try your search on: Qwika (all wikis)