Cross-country variation of real income and relative prices
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.
KeywordsReal Income Income Elasticity Relative Prex Budget Share Price Dispersion
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- Theil, H., Chung, C.-F. and Seale, J.L., Jr. (1989). International Evidence on Consumption Patterns. Greenwich, Conn.: JAI Press Inc.Google Scholar