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This up-to-date book demonstrates how the purchasing power parities (PPPs) of currencies are being increasingly used in place of exchange rates for a variety of purposes. These include: comparisons of real income, measurements of global inequality and poverty, calculation of the human development index, and assessment of nations ecomic performance. Despite the increasing popularity of PPPs, many users have very little appreciation of the data and methods used in their derivation. This timely mograph brings together a number of significant contributions from leading researchers in the field, offering a comprehensive review of the latest methods used in the construction and application of PPPs. The authors provide a broad overview of the current state-of-the-art both in terms of techniques as well as current practice with various international organisations. Given the increasing application of PPPs in this truly globalised world, this book will be a stimulating read for researchers and academics involved in international comparisons and development ecomics, general ecomists and ecomist statisticians.
Edited by D.S. Prasada Rao, Professor and Australian Research Council Professorial Fellow, School of Economics, The University of Queensland, Brisbane, Australia