Definition: Indirect volume comparison

Category: Purchasing power parities

A volume comparison between two countries made by dividing the expenditure ratio by the price ratio. The indirect volume comparison between country A and country B for product I is (PIA QIA / PIB QIB) / PIA/PIB = QIA / QIB where the P’s are the prices and the Q’s the volumes (quantities) of the product. Volume comparisons are usually made indirectly. http://ec.europa.eu/eurostat/product?code=KS-RA-12-023&mode=view Eurostat and Organization for Economic Cooperation and Development (OECD), "Eurostat - OECD Methodological manual on purchasing power parities (2005 Edition)", Methods and Nomenclatures, Office for Official Publications of the European Communities, Luxembourg, 2006European Union, Regulation (EC) No 1445/2007 establishing rules for the provision of basic information on PPPs, Official Journal of the European Union No L 336, 20.12.2007, p. 1 - 24