Abstract
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.
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References
Frisch, R. (1959). “A complete scheme for computing all direct and cross demand elasticities in a model with many sectors.” Econometrica 27: 177–196.
Theil, H., Chung, C.-F. and Seale, J.L., Jr. (1989). International Evidence on Consumption Patterns. Greenwich, Conn.: JAI Press Inc.
Theil, H. and Fiebig, D. (1986). “The measurement of income and price dispersion in cross-country demand systems.” Economics Letters 22: 391–393.
Theil, H. and Seale, J.L., Jr. (1987). “Measuring the distance between relative price vectors of different countries.” Economics Letters 23: 371–374.
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© 1996 Kluwer Academic Publishers
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Theil, H., Chen, D. (1996). Cross-country variation of real income and relative prices. In: Studies in Global Econometrics. Advanced Studies in Theoretical and Applied Econometrics, vol 30. Springer, Boston, MA. https://doi.org/10.1007/978-0-585-26874-3_5
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DOI: https://doi.org/10.1007/978-0-585-26874-3_5
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-7923-3660-0
Online ISBN: 978-0-585-26874-3
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