Cross-country variation of real income and relative prices

  • Henri Theil
  • Dongling Chen
Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 30)


PPP — based data (PPP = purchasing power parity) from the International Comparison Project are used to analyze per capita real incomes and relative prices of 30 countries. One result is a cross-country covariance matrix of real income and relative prices; it indicates that food becomes relatively less expensive when we move from poor to richer countries. A second result is a matrix showing distances of relative price vectors for pairs of countries. A third result is a pair of price variances associated with the Florida model for cross-country demand analysis.


Real Income Income Elasticity Relative Prex Budget Share Price Dispersion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Henri Theil
  • Dongling Chen

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