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Conversion factors : a discussion of alternate rates and corresponding weights

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  • Hee, Michael

Abstract

The significant operational implications underlying the Bank's estimates of per capita GNP, represent important considerations in systematizing the use of official rates in determining the exchange rate to be used in the Atlas methodology. This paper discusses issues and procedures to develop a time series of alternative conversion factors with corresponding weights for use in converting and presenting macro-level country statistics in a common unit of account, e.g. the U.S. dollar. The focus of the paper is on conversion factors that are representative of transaction or"effective"conversion factors. It also emphasizes the implications for Bank estimates of per capita, the kinds of evidence relevant in assessing the underlying conversion factors, and identifies countries where review of the official exchange rate merits serious consideration. The paper reviews the main concerns about the adequacy of the official exchange rate as a conversion factor.

Suggested Citation

  • Hee, Michael, 1990. "Conversion factors : a discussion of alternate rates and corresponding weights," Policy Research Working Paper Series 479, The World Bank.
    • Handle: RePEc:wbk:wbrwps:479
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    References listed on IDEAS

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    1. Anthony Lanyi, 1975. "Separate Exchange Markets for Capital and Current Transactions (Marchés des changes distincts pour les opérations sur capital et les opérations courantes) (Mercados cambiarios separados para las tr," IMF Staff Papers, Palgrave Macmillan, vol. 22(3), pages 714-749, November.
    2. Culbertson, William Patton, Jr, 1975. "Purchasing Power Parity and Black-Market Exchange Rates," Economic Inquiry, Western Economic Association International, vol. 13(2), pages 287-296, June.
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    1. International Economics Department, 1992. "Measuring the incomes of economies of the former Soviet Union," Policy Research Working Paper Series 1057, The World Bank.

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