Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/218972
Authors: 
Moatsos, Michail
Year of Publication: 
2020
Abstract: 
Purchasing Power Parity (PPP) exchange rates work appreciatively for comparing economies across the globe, instead of the standard market exchange rates. PPPs come closer to represent the relative size of the economies because they correct for non-tradeables that are relatively cheaper in less developed countries. However, those rates are constructed for comparing countries, or their households, in sum. Thereby when they are used to compare sub-groups, e.g. the poor in each country, their methodological foundations are stretched beyond their specifications. This paper highlights the often neglected issues that are raised from this standard practice in global poverty measurement.
Subjects: 
Global Poverty
Absolute Poverty
PPP
Purchasing Power Parity
Poverty Measurement
Global Poverty Measurement
JEL: 
I3
Document Type: 
Working Paper

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