Definition: Indirect binary comparison
Purchasing power parities
A price or volume comparison between two countries made through a third country. For example, in the case of countries A, B and C, the PPP (Purchasing power parity) between A and C is obtained by dividing the PPP between A and B by the PPP between C and B as follows: PPP A/C = PPP A/B / PPP C/B.
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012