Definition: Weighted CPD method
Purchasing power parities
A variant of the CPD method (Country-product-dummy method) in which representative products receive a higher weight in the calculation than non-representative products. For example, representative products could have the weight of 2 or 3 and unrepresentative products a weight of 1. The choice of weights is arbitrary as it is with the EKS (Eltetö-Köves-Szulc method). However, the weights of 1 for a representative product and 0 for an unrepresentative product used in the EKS cannot be used in a weighted CDP because the assignment of 0 to prices of unrepresentative products will remove them from the calculation.
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012