Jorge Salazar-Carrillo

International comparisons of prices, output and productivity

Overview (D.S. Prasada Rao, J. Salazar-Carrillo). Global, Regional and Sectoral Comparisons. International comparison program in the 1980s and 1990s (Z. Kenessey). Latin American comparisons for 1985 (J. Salazar-Carrillo). Intercountry comparisons of agricultural output and productivity 1970-1990 (Statistics Division). A perspective on international comparisons of capital (M. Ward). Comparative price and productivity levels: Korea and the United States (D. Pilat). China: The dollar value of gross domestic product (R.M. Field). An assessment of the United Nations scale of assessments 1946-1994 (L.H. Officer). Methodological Issues. Van IJzerens method of international price and volume comparison: An exposition (B.M. Balk). Consistency in aggregation principle for multilateral comparisons of purchasing power parities and real products (S.H. Khamis). Stochastic approach to international comparisons of prices and real income (D.S. Prasada Rao, E.A. Selvanathan). Structure of international prices: A production-based approach (Y. Kurabayashi). A reconsideration of log-change index numbers for international comparisons (D.S. Prasada Rao, J. Salazar-Carrillo). Regression estimates of per capita GDP based on purchasing power parities (S. Ahmaed). The PPP doctrine, long term exchange rates and a new method to estimate real gross domestic products (E. Lancieri). Productivity, factor endowments, military expenditures, and national price levels (J.H. Bergstrand).

Comparisons of Purchasing Power and Real Income in Latin America: A Review of Methods

Publisher Summary This chapter discusses presents some studies comparing purchasing power and real income in Latin America. Although they present some deficiencies, the national accounts of Latin America meet the requirements of the former United Nations system, and make comparative studies of purchasing power and real products possible. A study described in the chapter adopted the comparison of the GDP on the expenditure side rather than on the production side. The final market prices at the purchasers level are compiled from representative selection of private consumption goods and services in the various Latin American countries. It is not possible to cover all private consumption items, and therefore, a representative sample—approximately 250 products in 1979—was selected. This selection takes into account the composition of the expenditures and the importance of each group of products in the various participating countries, and ease of specifying the products and obtaining the prices.

A Reconsideration of Log-Change Index Numbers for International Comparisons

Since the seminal work of Milton Gilbert, in the early 1950 s, and subsequent research of Gilbert and Kravis, the last three decades have witnessed many developments in the area of international comparisons of prices, purchasing powers of currencies and real product. Research in this area has been supported by a number of international organizations such as the World Bank, Statistical Offices of the United nations and the European Union and the Food and Agriculture Organization. [Extract from introduction]

The use of Regression Methods in International Comparisons

Publisher Summary This chapter presents the use of regression methods in the international comparison project of the level and structure of prices in the Latin American Free Trade Association. The chapter presents a study that was undertaken by a group of research institutes from the countries involved, coordinated by professional staff from ECIEL. Regression methods have been used to compare the prices of durable consumer goods, or producer durables, and housing services. One of the early projects undertaken by ECIEL was an international price comparison among the Latin American countries. The purpose of the study described in the chapter was to compare prices, purchasing power of currencies, and gross domestic products among these countries. Common and comprehensive sets of consumption, investment, and public sector goods were classified, and a price survey for all those sectors was undertaken in each country. The expenditure patterns for the corresponding goods were also determined. From these standardized prices and expenditure estimates, several indexes were calculated for the intercountry comparison. The expenditure sectors considered for the survey were private consumption, public consumption and investment.

A Generalized Konus System of Index Numbers for Multilateral Comparisons

Publisher Summary This chapter presents an overview of a generalized Konus system of index numbers for multilateral comparisons. Most of the discussions on cost-of-living index numbers center around the Konus index, which forms the basis of any exposition on price index numbers. The most commonly used index number formulae—those because of Laspeyres, Paasche, and Fisher—are motivated and described using the Konus index. The notion that the Laspeyres and Paasche formulae can provide bounds for the true cost of living is also based on the Konus index. However, the Konus index is conceptually limited to binary comparisons involving prices and quantities at two points in time or prevailing in two different regions. This chapter focuses on the basic idea underlying the Konus index. It presents the basic definitions and concepts relevant for multilateral comparisons, and also focuses on the Konus formula and its properties. It also presents a generalization for multilateral comparisons. The chapter also explores the properties of the proposed generalization.

International Comparisons on the Basis of Different Types of Prices

Publisher Summary This chapter presents a comparison of the results of international comparisons of prices and purchasing power calculated on the basis of prices referring to a given year or month, with the country as a whole or to the capital city. The purpose of the study was to determine the degree of precision obtained with more limited, although less expensive and lagged information. This study involved the capital cities of nine countries. Although the prices were not collected on the same data in the nine countries, they were adjusted to permit comparison. The studies made by the ECIEL Program were based on two different surveys—one in 1968 and another in 1973. Part of the methodological originality of these efforts lies in the fact that, on both occasions, the surveys were made in the capital cities, and concurrently comparable information was collected in other urban and cities in the country to calculate prices that were representative nationally.

Real Product and Price Comparisons in Central American Countries: 1987

Publisher Summary This chapter focuses on real product and price comparisons in Central American countries for the year 1987. The chapter discusses real GDP estimates, inter-country price indices, and purchasing power parities of currencies of four Central American countries with Guatemalan Quetzales as the numeraire currency for the year 1987. The chapter presents an update of—for Central America—a study undertaken for the year 1979. The data used in this study was drawn from an international comparisons survey of prices, expenditures, and exchange rates undertaken by the Central American Common Market. The price data were obtained from price surveys in the form of price quotations for 400 aggregated items of expenditure. These items include private consumption, construction, machinery and equipment, and government expenditure. These price data were used in conjunction with the expenditure data provided by the Statistical Offices and Central Banks of the countries included.

Some Reflections on the Future Role of Intergovernmental Financial Institutions

The only certainty concerning the future of intergovernmental financial institutions is that it will differ from what we may forecast. Indeed, the topic is, in a sense, an impossible one. This provides me with an excuse to interpret my role broadly: to speculate on the evolution of the relationship between international institutions, governments, the private sector and markets in discharging the functions that any international financial, banking, or monetary system fulfils. The notes that follow have a limited aim: to provide a few elements for a discussion of the future shape of the international financial system and for strategic thinking about the distribution of roles and functions among the private and public sector, on the one hand, and among national and international institutions, on the other hand.

Labor Income Differentials within the Latin American Free Trade Area (LAFTA)

This article considers the major results of a study of relative wage structures in the LAFTA region. It first discusses the nature and methodology of the study, which was undertaken for ECIEL. Data on the size of labor income differences are introduced, and an attempt is made to determine the causes of such differences, and to relate them to various wage differentials. The main findings of the study are then summarized, with discussions of inter‐country, intra‐country, and occupational labor income differentials and their causes. Finally, the results of the study are updated to the end of 1970, and some conclusions are derived regarding the inter‐temporal behavior of wages in LAFTA.