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PPP Aggregations Across and Above Basic Headings

The recommendation of the 1993 SNA was that either the EKS or G-K methods be used in international comparisons of purchasing power. These aggregations were done by regions using any numeraire currency they wished, since these estimates were independent of what would happen at the world level.  However, it was also recommended that research be undertaken during the 2005 round on alternative approaches. At least 5 such approaches were mentioned by an expert group.  They included the minimum spanning tree approach (Robert Hill) as applied to countries within country groups, a modified Ikle approach (Yuri Dikhanov), the share and additive methods (Erwin Diewert and Sergey Sergueev), and the modified CPD approach (Prasada Rao). These issues were treated in a background paper that surveyed some of the proposed methods followed by or with a separate paper that examined applications using preliminary data sets from the 2005 surveys and eventually the 2005 benchmark data.

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