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Don't Overdo PPP Adjustment of Real Output

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  • Patrick Honohan

    (Economic and Social Research Institute (ESRI))

Abstract

Conventional PPP-adjusted real output measures, invaluable for making international comparisons of living standards, may greatly exaggerate the productive capacity of poor countries. The equilibrium prices of an hypothetical world of full economic integration provide an instructive basis for evaluating the potential share of different countries in world output

Suggested Citation

  • Patrick Honohan, 1997. "Don't Overdo PPP Adjustment of Real Output," Papers WP092, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp092
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    File URL: https://www.esri.ie/pubs/WP092.pdf
    File Function: First version, 1997
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    Cited by:

    1. Neary, Peter, 2000. "True Multilateral Indexes for International Comparisons of Real Income: Theory and Empirics," CEPR Discussion Papers 2590, C.E.P.R. Discussion Papers.

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