Paasche Type PPP
1 definitions

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A PPP for a basic heading or an aggregate between two countries, country B and country A, where the reference country is country A and the weights are those of country B.

Context

At the basic heading level, the PPP is defined as a quasi-weighted geometric average of the price relatives between country B and country A for the products representative of country B. At an aggregate level, the PPP is defined as the weighted harmonic average of the PPPs between country B and country A for the basic headings covered by the aggregate with the expenditure shares of country B being used as weights.

FK Reading Ease
55.4

FK Grade Level
College
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