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Postage Price Parity

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  • Maxwell N. Maesepp

Abstract

A large part of international economics research is devoted to the theory of Purchasing Power Parity (PPP). There have been numerous attempts by economists over the years to devise an accurate, reliable and convenient measure for this theory – the most famous of these being the “Big Mac index” compiled by The Economist. In the spirit of the “Big Mac index”, this paper introduces another alternative measure of PPP here, using the prices of postage stamps for international mail delivery, that is just as, if not more, attractive as any other current measure.

Suggested Citation

  • Maxwell N. Maesepp, 2009. "Postage Price Parity," Economic Papers, The Economic Society of Australia, vol. 28(2), pages 169-175, June.
    • Handle: RePEc:bla:econpa:v:28:y:2009:i:2:p:169-175
    DOI: 10.1111/j.1759-3441.2009.00015.x
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    References listed on IDEAS

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    1. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72(6), pages 584-584.
    2. Lawrence H. Officer, 1982. "The Purchasing-Power-Parity Theory of Gerrard de Malynes," History of Political Economy, Duke University Press, vol. 14(2), pages 256-259, Summer.
    3. Kenneth W. Clements & Yihui Lan & Shi Pei Seah, 2007. "The Big Mac Index 21 Years On: An Evaluation of Burgereconomics," Economics Discussion / Working Papers 07-23, The University of Western Australia, Department of Economics.
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