Purchasing power parties and real SIze of world economics

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Free ebooks ==> www.Ebook777.com 92494 www.Ebook777.com Purchasing Power Parities and the Real Size of World Economies Free ebooks ==> www.Ebook777.com Purchasing Power Parities and the Real Size of World Economies A COMPREHENSIVE REPORT OF THE 2011 INTERNATIONAL COMPARISON PROGRAM www.Ebook777.com © 2015 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 17 16 15 14 This work is a product of the staff of The World Bank with external contributions The findings, interpretations, and conclusions expressed in this work not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent The World Bank does not guarantee the accuracy of the data included in this work The boundaries, colors, denominations, and other information shown on any map in this work not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/licenses/by/3.0/igo Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: World Bank 2015 Purchasing Power Parities and the Real Size of World Economies: A Comprehensive Report of the 2011 International Comparison Program Washington, DC: World Bank doi:10.1596/978-1-4648-0329-1 License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation The World Bank shall not be liable for any content or error in this translation Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank Views and opinions expressed in the adaptation are the sole responsibility of the author or authors and are not endorsed by The World Bank Third-party content—The World Bank does not necessarily own each component of the content contained within the work The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties The risk of claims resulting from such infringement rests solely with you If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner Examples of components can include, but are not limited to, tables, figures, or images All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org ISBN (paper): 978-1-4648-0329-1 ISBN (electronic): 978-1-4648-0330-7 DOI: 10.1596/978-1-4648-0329-1 Cover design: Jomo Tariku/World Bank Group Library of Congress Cataloging-in-Publication Data has been requested Contents Foreword xi Acknowledgments xiii Abbreviations xvii Overview Governance of ICP 2011 Regional and Country Coverage Methodology and Innovations ICP 2011 versus ICP 2005 The ICP 2011 Results: An Overview Organization of This Report Chapter Background Organization of ICP 2011 10 The ICP Approach to GDP Comparisons 11 Exchange Rates 12 Purchasing Power Parities 13 Price Level Indexes 13 Real Expenditures 14 Actual Individual Consumption 14 Uses of PPPs and Real Expenditures 15 Chapter Presentation and Analysis of Results 17 Presentation of Results 17 Analysis of Results 152 Reliability and Limitations of PPPs and Real Expenditures 167 Differences between the 2005 and 2011 Comparisons 170 Comparing 2011 PPPs Extrapolated from ICP 2005 and ICP 2011 Benchmark PPPs 172 Chapter Data Requirements .175 Conceptual Framework 175 Surveys and Data Collection 182 Data Validation 193 v Chapter Methodologies Used to Calculate Regional and Global PPPs 203 Household Consumption 204 Comparison-Resistant Components 206 Reference PPPs 210 Aggregating Linked Basic Heading PPPs to GDP 211 Special Situations 211 Imputing PPPs for Nonparticipating Economies 212 Appendix A History of the International Comparison Program (ICP) 215 Appendix B Governance of ICP 2011 .219 Appendix C Eurostat-OECD PPP Programme 223 Eurostat-OECD Comparisons 223 Organization of the 2011 Comparison 224 Data Collection for the 2011 Comparison 225 Calculation and Aggregation of PPPS 227 Additional Information 227 Appendix D ICP Expenditure Classification 229 Deriving Actual Individual Consumption 229 Facilitating the Input Price Approach 230 Adjusting the Household Expenditure to the National Concept 231 Appendix E National Accounts: Estimation, Compliance, and Exhaustiveness .241 Estimation 241 Compliance and Exhaustiveness 244 Appendix F Changes in Methodology between the 2005 and 2011 ICP Rounds .251 Household Consumption: Product Selection and Important Products 252 Housing Rents 253 Government Compensation 254 Construction 254 Estimating Within-Region PPPS 256 Linking the Regions 257 Summary 258 Appendix G Reference PPPs Used in ICP 2011 .259 Appendix H Updated ICP 2005 Results 263 Appendix I Comparison of ICP 2011 Results with 2011 Results Extrapolated from ICP 2005 275 Appendix J ICP 2011 Data Access and Archiving Policy .283 Context 283 Data Access Objectives 283 Guiding Principles 284 Procedures for Data Archiving 285 Procedures for Data Access 285 vi Contents Appendix K ICP Revision Policy .287 Triggers for Revising ICP Indicators 288 Guidelines for Revising ICP Indicators 288 Timing and Communication of Revisions 289 Glossary 291 References 305 Boxes 1.1 Using Exchange Rates and PPPs to Convert to a Common Currency 12 2.1 Analytical Categories: Tables 2.2–2.11 and Supplementary Tables 2.12 and 2.13 19 3.1 Standardized Price Ratios 197 E.1 MORES Worksheets, ICP 2011 242 E.2 ICP National Accounts Quality Assurance Questionnaire, ICP 2011 245 E.3 Types of Nonexhaustiveness Identified in GDP Exhaustiveness Questionnaire, ICP 2011 247 Figures 2.1 Percentage of PPP-Based and Exchange Rate–Based GDP and Population by Income Group, ICP 2011 and ICP 2005 153 2.2 PPP-Based and Exchange Rate–Based GDP Regional Shares (World = 100), ICP 2011 153 2.3 Index of Regional Average Real Expenditures Per Capita (World = 100) on Major Aggregates (PPP-Based), ICP 2011 .156 2.4 Real GDP Per Capita and Shares of Global Population, ICP 2011 158 2.5 GDP Price Level Index versus GDP Per Capita (and Size of GDP Expenditures), ICP 2011 160 2.6 GDP Price Level Index versus Expenditure Per Capita with Trend Lines, Eurostat-OECD and Non–Eurostat-OECD Economies, ICP 2011 161 2.7 Regional Average Price Level Indexes by GDP and Major Aggregates, ICP 2011 162 2.8 Regional Average Price Level Indexes (World = 100) for GDP and 15 Aggregates, ICP 2011 164 2.9 Coefficients of Variation (CVs): GDP Per Capita Index and Price Level Indexes (PLIs) for GDP and Major Aggregates by Region, ICP 2011 165 2.10 Lorenz Curve for ICP 2011 and ICP 2005 GDP Per Capita Distribution 167 Tables O.1 Number of Participating Economies, by ICP Region, ICP 2011 2.1 Summary Results and Reference Data, ICP 2011 24 Contents vii Free ebooks ==> www.Ebook777.com 2.2 Nominal Expenditures in National Currency Units, ICP 2011 30 2.3 Shares of Nominal Expenditures (GDP = 100), ICP 2011 42 2.4 Purchasing Power Parities (U.S Dollar = 1.00), ICP 2011 54 2.5 Real Expenditures in U.S Dollars, ICP 2011 66 2.6 Shares of World Real Expenditures (World = 100), ICP 2011 78 2.7 Real Expenditures Per Capita in U.S Dollars, ICP 2011 90 2.8 Indexes of Real Expenditures Per Capita (World = 100), ICP 2011 102 2.9 Price Level Indexes (World = 100), ICP 2011 114 2.10 Nominal Expenditures in U.S Dollars, ICP 2011 126 2.11 Nominal Expenditures Per Capita in U.S Dollars, ICP 2011 138 2.12 Main Results and Reference Data, Pacific Islands, ICP 2011 150 2.13 Estimated Results and Reference Data, Nonbenchmark Economies, ICP 2011 151 2.14 Twelve Largest Economies by Share of World GDP, ICP 2011 154 2.15 Percentage of GDP to U.S GDP (PPP-Based) for 12 Largest Economies, ICP 2011 and ICP 2005 154 2.16 Regional Shares of World GDP and Major Aggregates, ICP 2011 155 2.17 Shares of World Expenditure on Construction and Machinery and Equipment of Economies with Largest Construction Shares, ICP 2011 155 2.18 PPP-Based Shares of World GDP and Per Capita Measures: High-, Middle-, and Low-Income Economies, ICP 2011 156 2.19 PPP-Based and Exchange Rate–Based GDP Per Capita Expenditures for the 10 Economies with the Largest and Smallest Values and Ratios Relative to the United States, ICP 2011 157 2.20 PPP-Based and Exchange Rate–Based Actual Individual Consumption (AIC) Per Capita and Ratios Relative to the United States, ICP 2011 159 2.21 Economies with Highest and Lowest Price Level Indexes (PLIs), ICP 2011 .161 2.22 Population-Weighted Gini Coefficient for ICP Economies, ICP 2011 and ICP 2005 166 3.1 Number of Priced Global Core Products per Region and Survey, ICP 2011 183 3.2 Machinery and Equipment Core Product List, ICP 2011 191 D.1 Structure of the ICP Expenditure Classification, ICP 2011 230 D.2 Expenditure Classification, ICP 2011 231 E.1 Economic Activities, Expenditure Categories, and Income Transactions Identified in Exhaustiveness Questionnaire, ICP 2011 248 G.1 Reference PPPs, ICP 2011 260 viii Contents www.Ebook777.com ... Purchasing Power Parities and the Real Size of World Economies Free ebooks ==> www.Ebook777.com Purchasing Power Parities and the Real Size of World Economies A COMPREHENSIVE REPORT OF THE... Nations, and World Bank Over its lifetime, the ICP has become the principal source of data on the purchasing power parities (PPPs) of currencies, measures of real per capita income, and measures of real. .. to the Global Office, Purchasing Power Parities and the Real Size of World Economies hosted by the World Bank The Global Office was responsible for implementing the work program of the ICP The