Definition: Indirect volume comparison

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.
Source:
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012
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