Global Purchasing Power Parities and Real Expenditures - Afristat

More documents

Recommendations

Info

Data Requirements 143ing the latter requirement proved to be difficult in manyeconomies. The special price collections for the ICP weregenerally run once in each quarter. In some cases, it was necessaryfor economies to collect prices monthly to preventbiases from price volatility during the quarter. An alternative,adopted by some economies for products whose priceswere highly seasonal, was to use price movements from thesame product (or product group) in the CPI to adjust theICP prices that were collected less frequently than thosein the CPI. This option was not available in all economiesbecause it requires having a sufficiently detailed and reliablemonthly CPI available.Calculating national average prices consistent with thenational accounts proved to be a difficult process, particularlyin very large economies. Generally, prices in rural areasare lower than those in urban centers, but collecting pricesin rural areas is more difficult and costly than collectingthem in towns and cities. Where it was not feasible to collectprices in both urban and rural areas, it was sometimespossible to use price information collected for other purposes.For example, rural and urban adjustment factors weresometimes applied to the prices collected in urban areas toimpute rural price levels. The urban and rural prices werethen combined (using weights derived from householdexpenditure surveys or other sources) to obtain a nationalaverage price. For many basic headings, the rural sector hadlittle impact on average prices, because the products or serviceswere only available in urban areas.Representativity and ComparabilityThe selection of the products to be priced affected theoutcome of the comparisons. The products to be priced byeach economy needed to meet two criteria: they shouldbe representative of its economy and comparable betweeneconomies. Conflicts arise because products that are mostrepresentative of a particular type of expenditure in oneeconomy are not necessarily identical to those in anothereconomy.In practice, there are significant differences in productspurchased within the same basic heading in different economies.And, of course, the proportions of total expenditurefor each basic heading differ between economies. Therefore,trade-offs were required to ensure that the productspriced were representative of the expenditures to whichthey related, as well as being comparable from one economyto another.The representative products of an economy are thosethat figure prominently in the expenditures within a basicheading. They may therefore be products that are frequentlypurchased by resident households and are likely tobe widely available throughout the economy. They may alsobe relatively high-value products that may not be boughtso frequently, but whose total value is a significant proportionof the total expenditure within a basic heading.With regard to comparability, products are said to becomparable if their physical and economic characteristicsare identical or they are so similar that consumers arehardly concerned about differences between them. In otherwords, a typical consumer is not prepared to pay more forone than the other. The main way in which comparabilitywas ensured was to prepare detailed specifications foreach product to be priced for the ICP in each region. However,another trade-off was involved in this process. On onehand, a product selected for pricing in different economiescan be more accurately compared between economies ifthe specifications are tightly defined. On the other hand,the more tightly defined the product, the less likelihoodthere is of locating it in many economies.Product lists were constructed to provide the greatestpossible opportunity for economies to identify representativeproducts to price. No economy was expected to priceall the products within any particular basic heading. But alleconomies were expected to price at least some nonrepresentativeproducts so they could be matched with pricescollected in other economies.Price Data: Government FinalConsumption ExpenditureCompensation of employees in health, education, andgeneral government is a major input to overall governmentPPPs. The compensation recorded for PPP purposesincluded basic salary and allowances before income taxes,in-kind payments (such as employer-subsidized housing),and actual and imputed social security contributions paidby the employer.
144 Global Purchasing Power Parities and Real ExpendituresTable 3Commonly Used Reference PPPsCode Description reference PPP100000 Gross domestic product110000 Final consumption expenditure by households110400 Housing, water, electricity, gas, and other fuels110440 Water supply and miscellaneous services relating tothe dwelling110442 Miscellaneous services relating to the dwelling110442.1 Miscellaneous services relating to the dwelling PPPs for actual and imputed rents110600 Health110630 Hospital services110631 Hospital services110631.1 Hospital services PPPs for production of health services by government(without net taxes on production and receipts from sales)110900 Recreation and culture110960 Package holidays110961 Package holidays110961.1 Package holidays PPPs for transport services and restaurants and hotels130000 Individual consumption expenditure by government130220 Production of health services130222 Intermediate consumption130222.1 Intermediate consumption PPPs for household final consumption expenditure onthe domestic market (excluding health and educationbasic headings and reference PPPs basic headings)130223 Gross operating surplus130223.1 Gross operating surplus PPPs for gross fixed capital formation130224 Net taxes on production130224.1 Net taxes on production PPPs for production of health services by government(without net taxes on production and receipts from sales)130225 Receipts from sales130225.1 Receipts from sales PPPs for production of health services by government(without net taxes on production and receipts from sales)160000 Changes in inventories and acquisitions, less disposalsof valuables160100 Changes in inventories160110 Changes in inventories160111 Changes in inventories160111.1 Changes in inventories PPPs for consumer goods and equipment goodsSource: ICP Global Office.
Page 2:
Global Purchasing PowerParities and
Page 5 and 6:
© 2008 by the International Bank f
Page 7 and 8:
viContentsPart II: Technical Notes
Page 10 and 11:
Acronyms and AbbreviationsADBAfDBBO
Page 12 and 13:
PrefaceThis publication presents th
Page 14 and 15:
AcknowledgmentsThe ICP shares a com
Page 16:
Part IPurchasing Power Paritiesand
Page 19 and 20:
Global Purchasing Power Parities an
Page 21 and 22:
Global Purchasing Power Parities an
Page 24 and 25:
2005 ICP:Results and Major Findings
Page 26 and 27:
2005 ICP: Results and Major Finding
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36:
Tables of Results21
Page 39 and 40:
24 Global Purchasing Power Parities
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108: 92 Global Purchasing Power Parities
Page 115 and 116: 100 Global Purchasing Power Paritie
Page 154: Part IITechnical Notes of the 2005
Page 157: 142 Global Purchasing Power Paritie
Page 162 and 163: Comparison-Resistant AreasSome comp
Page 164 and 165: Comparison-Resistant Areas 149mmmHo
Page 166 and 167: Data ValidationData validation was
Page 168: Data Validation 153determines the l
Page 182 and 183: Appendix AHistory of The ICPEconomi
Page 184: Appendix A 169which selected econom
Page 209 and 210:
194 Global Purchasing Power Paritie
Page 211 and 212:
Page 213 and 214:
Page 216 and 217:
GlossaryActual individual consumpti
Page 218 and 219:
Glossary 203tice, general administr
Page 220 and 221:
Glossary 205in nonmarket production
Page 222 and 223:
Glossary 207Multilateral comparison
Page 224:
Glossary 209able as a result of the
Page 227 and 228:
show all

Global Purchasing Power Parities and Real Expenditures - Afristat

Create successful ePaper yourself

Delete template?

Save as template?