Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 10, 2022 erstellt
Description:
This paper reviews and synthetises three areas: The International Comparison Program (ICP), purchasing power parity (PPP) and patterns of household expenditure across countries. To compare countries consistently, the ICP uses relative price levels as PPPs. This approach is seemingly different to that of international finance, whereby PPP is now widely taken to mean that market exchange rates reflect national price levels over the longer term. A unification of the two approaches is suggested with a dependent-economy model. Detailed information on household expenditure patterns is another prominent component of the ICP. The prospectivity of these data is illustrated with several “laws” of consumption, a survey of research on cross-country consumption, and estimates of a global system of demand equations