Abstract
The International Comparisons Program (ICP) run by theWorldBank compares prices and real incomes across countries, and plays a pivotal role in the PennWorld Table. Using a unique dataset consisting of over 600,000 price quotes from nine countries in theAsia‐Pacific region, we consider ways of improving the basic heading price indexes that form the building blocks ofICP. CurrentICPmethodology computes these price indexes using the country–product–dummy (CPD) method applied to the country average prices. We contrast this approach with: (i) a weighted version ofCPD; (ii)CPDapplied directly to the individual price quotes; and (iii) extended versions ofCPDthat include adjustments for unrepresentative products, urban–rural price differences, and different outlet‐types. Also considered are newCPD‐based methods for measuring urban–rural price differences, and the implications of our findings for the downward revision inChina'sGDPinICP2005.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
